Under Which of the Following Conditions Would You Prefer to Be

question 34

Multiple Choice

Under which of the following conditions would you prefer to be the borrower?

• A) The nominal rate of interest is 12 per cent and the inflation rate is 9 per cent.
• B) The nominal rate of interest is 20 per cent and the inflation rate is 25 per cent.
• C) The nominal rate of interest is 5 per cent and the inflation rate is 1 per cent.
• D) The nominal rate of interest is 15 per cent and the inflation rate is 14 per cent.

---

Definitions:

Worst-Off Person

A concept in ethics and economics, referring to the individual in a society who has the least well-being, resources, or opportunities.

Well-Being

A state of being comfortable, healthy, or happy, often used in economic terms to refer to the economic welfare or quality of life of individuals or societies.

Government Policy

Refers to the actions or inaction of a government intended to influence or control economic, social, or political matters.

Adverse Events

Unintended and generally negative outcomes or occurrences associated with a particular process, treatment, or action.