In which of the following situations would you prefer to be making a loan?
A. The interest rate is 9 percent and the expected inflation rate is 7 percent.
B. The interest rate is 4 percent and the expected inflation rate is 1 percent.
C. The interest rate is 13 percent and the expected inflation rate is 15 percent.
D. The interest rate is 25 percent and the expected inflation rate is 50 percent.
Answer:B
In which of the following situations would you prefer to be making a loan?
A. The interest rate is 9 percent and the expected inflation rate is 7 percent.
 B. The interest rate is 4 percent and the expected inflation rate is 1 percent.
 C. The interest rate is 13 percent and the expected inflation rate is 15 percent.
 D. The interest rate is 25 percent and the expected inflation rate is 50 percent.
