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In which situation would consumers borrow less Situation 1 Nominal interest rate 5% Inflation rate=1% Situation 2 Nominal interest rate 8% Inflation rate 5% Select

In which situation would consumers borrow less? Situation 1: Nominal interest rate=5%, Inflation rate=1%. Situation 2: Nominal interest rate=8%, Inflation rate=5% Select one: a. Situation 1 as real interest rate is 4%. b. Situation 2 as real interest rate is 3%. c. Situation 1 as real interest rate is 1% d. Situation 2 as real interest rate is 4%

May 15 2020 Read more Less More

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