Suppose You Borrow $1,000 at an Interest Rate of 12

Multiple Choice

Suppose you borrow $1,000 at an interest rate of 12 percent.If the expected real interest rate is 5 percent, then the rate of inflation over the upcoming year that would be most beneficial to you would be a rate of inflation

A) equal to 0 percent.
B) greater than 7 percent.
C) equal to 7 percent.
D) less than 7 percent.
E) equal to 3 percent.