In Which of the Following Situations Would You Prefer to Be

question 70

Multiple Choice

In which of the following situations would you prefer to be borrowing?

• 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.

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Definitions:

Unreasonable Risk

A hazard that exceeds what would be considered acceptable or safe under normal circumstances.

Harm

Physical or psychological injury or damage suffered by an individual, which can be a basis for legal action.

Assault

An intentional act that creates a reasonable apprehension of immediate harmful or offensive contact.

Immediate Bodily Harm

A situation where physical injury or damage to a person's body is either happening or is imminent.