Q
Under which of the following conditions would you prefer to be the lender ?
-
A
A. The nominal rate of interest is 15 percent and the inflation rate is 14 percent
-
B
B. The nominal rate of interest is 20 percent and the inflation rate is 25 percent
-
C
C. The nominal rate of interest is 12 percent and the inflation rate is 9 percent
-
D
D. The nominal rate of interest is 5 percent and the inflation rate are 1 percent
Correct Answer:
D. D. The nominal rate of interest is 5 percent and the inflation rate are 1 percent
