You Would Rather Be a Borrower When the _____

question 60

Multiple Choice

You would rather be a borrower when the _____

• A) interest rate is 10 percent and expected inflation is 2 percent.
• B) interest rate is 5 percent and expected inflation is minus 2 percent.
• C) interest rate is 9 percent and expected inflation is 7 percent.
• D) interest rate is 8 percent and expected inflation is minus 3 percent.
• E) interest rate is 12 percent and expected inflation is 5 percent.

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Definitions:

New Deal

Public work projects, a series of regulatory actions, and financial reforms implemented in the 1930s in the United States by President Franklin D. Roosevelt to tackle the Great Depression.

Political Group

An organization or a collective of people who come together based on shared political interests, objectives, or ideologies.

Progressives

A group or movement in the late 19th and early 20th centuries in America that pursued reforms to address social, economic, and political issues.

Dust Bowl

Great Plains counties where millions of tons of topsoil were blown away from parched farmland in the 1930s; massive migration of farm families followed.