In which of the following situations would you prefer to be the borrower?
A) The interest rate is 9 percent and the expected inflation rate is 7 percent.
B) The interest rate is 4 percent and the expected inflation rate is 1 percent.
C) The interest rate is 13 percent and the expected inflation rate is 15 percent.
D) The interest rate is 25 percent and the expected inflation rate is 50 percent.
D
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The majority of economists favor open capital flows
Indicate whether the statement is true or false
Why would a usury law result in banks making less credit available to low-income households?
What will be an ideal response?
Positive economics concerns
a. reflections of a country's values b. judgments on the merit of an economic outcome c. statements of fact concerning the economy d. analysis of what ought to be e. analysis of all good or positive market outcomes
If the economy is in the vertical portion of the AS curve, what will be the effect on an increase in the price level on the level of employment?
A. There will be substantial increase in employment B. There will be a less than proportional increase in employment C. There will be no change in employment D. Cannot be predicted from the information given