Consider the Situations of a Lender of Money and a Borrower

question 7

Multiple Choice

Consider the situations of a lender of money and a borrower of money. Which of the following situations is least burdensome for the borrower?

• A)nominal interest rate of 8% and an inflation rate of 2%
• B)nominal interest rate of 10% and an inflation rate of 1%
• C)nominal interest rate of 15% and an inflation rate of 8%
• D)nominal interest rate of 4% and an inflation rate of 4%
• E)nominal interest rate of 29% and an inflation rate of 21%

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The act of motivating or urging individuals to take part or become actively involved in a process or activity.

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A suggestion or plan put forward to modify, alter, or transform an existing situation, system, or process.

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