If You Anticipate That the Inflation Rate Is Going to Rise

question 246

Multiple Choice

If you anticipate that the inflation rate is going to rise from 2 percent to 5 percent next year, you should

• A) save your funds at a fixed rate of interest.
• B) borrow funds at a fixed rate of interest.
• C) keep your funds in your sock drawer.
• D) wait to buy a house until next year.

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