In which of the following situations would it be MOST advantageous to be borrowi
ID: 1223957 • Letter: I
Question
In which of the following situations would it be MOST advantageous to be borrowing? A. the nominal interest rate is 2 percent and expected inflation rate is 0 percent. B. the nominal interest rate is 3 percent and the expected inflation rate is -3 percent C. the nominal interest rate is 5 percent and the expected inflation rate is 4 percent D. the nominal interest rate is 10 percent and the expected inflation rate is 6 percent E. the nominal interest rate is 12 percent and the expected inflation rate is 7 percent **please explain how to figure out the problem**
Explanation / Answer
option B is the right one