Which of the following is true if
someone decides to borrow $1000
from a bank at 5% interest...
Which of the following is true if
someone decides to borrow $1000
from a bank at 5% interest during a
time period of 10% inflation?
A. Loans are not given during times of inflation.
B. The creditor would offer interest free loans.
C. The debtor would benefit the most.
D. Inflation does not affect interest rates.
Answers: 3
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