Posted by **bill** on Wednesday, March 18, 2009 at 10:39pm.

Suppose you were borrowing money to buy a car. Which of these situations would you prefer:The interest rate on your car loan is 20 percent and the inflation rate is 19 percent or the interest rate on your car loan is 5 percent and the inflation rate is 2 percent? explain

- macroeconomics -
**Ms. Sue**, Wednesday, March 18, 2009 at 10:45pm
Bobpursley already posted his answer.

Which do you think is the better deal for you?

- macroeconomics -
**lolo**, Friday, October 31, 2014 at 12:14pm
The second case since the inflation is the increase in the price level and 2 percent is lower than 19 percent and the interset is also lower so i'll saved more money

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