Multiple Choice
Consider the situations of a lender and a borrower of money.Which of the following situations is most advantageous to the lender?
A) inflation rate of 0% nominal interest rate of 2%
B) inflation rate of 2% nominal interest rate of 7.5%
C) inflation rate of -1% nominal interest rate of 3%
D) inflation rate of 2% nominal interest rate of 4%
E) inflation rate of 3% nominal interest rate of 7.5%
Correct Answer:
Verified
Correct Answer:
Verified
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