Comparing the situation of a nominal interest rate

Reference no: EM13689376

Comparing the situation of a nominal interest rate of 10 percent and an inflation rate of 9 percent with a nominal interest rate if 6 percent and inflation rate 2, consumers would borrow more in which situation?

A. Nominal Interest rate of 10 percent since real interest rate is 1 percent.

B. Nominal interest rate of 10 percent since the real interest rate is 9 percent

C. Nominal interest rate of 6 percent since the real interest rate is 2 percent

D. Nominal interest rate of 6 percent since the real interest rate is 4 percent

Reference no: EM13689376

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