Multiple Choice
In which case would people desire to borrow the most?
A) the nominal interest rate is 8% and the inflation rate is 7%
B) the nominal interest rate is 7% and the inflation rate is 5%
C) the nominal interest rate is 6% and the inflation rate is 3%
D) the nominal interest rate is 5% and the inflation rate is 1%
Correct Answer:
Verified
Correct Answer:
Verified
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