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

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

Answer This Question

Related Questions

macro - Suppose you were borrowing money to buy a car. Which of these situations...

macroeconomics - Suppose you borrow $900 of principal that must be repaid at the...

Algebra - This assignment is about a car loan. A financial institution in your ...

eco - Suppose a person pays $80 of annual interest on a loan that has a 5 ...

macroeconomics - Assume that a series of inflation rates is 1 percent, 2 ...

Macroeconomics - Assignment Question I can't find an answer too: Assume that a ...

Macroeconomics - Assignment Question I can't find an answer too: Assume that a ...

consumer math - Alisha has a five-year car loan of $15,000 with an interest rate...

macroeconomics - If the operators of the golf course revised their revenue ...

AP Macroeconomics - 3. You buy a certificate of deposit (CD) that pays a nominal...