3010EconomicsMedium
Under which of the following conditions would you prefer to be the lender?
AThe nominal rate of interest is 20 percent and the inflation rate is 25 percent
BThe nominal rate of interest is 5 percent and the inflation rate are 1 percent
CThe nominal rate of interest is 15 percent and the inflation rate is 14 percent
DThe nominal rate of interest is 12 percent and the inflation rate is 9 percent
Correct answer
B. The nominal rate of interest is 5 percent and the inflation rate are 1 percent
Explanation
The correct answer is The nominal rate of interest is 5 percent and the inflation rate are 1 percent.