Multiple Choice
Suppose you borrow $5000 at an interest rate of 8%.If the expected real interest rate is 3%,then the rate of inflation over the upcoming year that would be most beneficial to you would be
A) 0%.
B) greater than 0% but less than 5%.
C) equal to 5%.
D) greater than 5%.
Correct Answer:
Verified
Correct Answer:
Verified
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