Consider the situations of a lender of money and a borrower of money. Which of the following situations is

most

burdensome for the borrower?

A.nominal interest rate of

6%

and an inflation rate of

2%

B.

nominal interest rate of

26%

and an inflation rate of

20%

C.

nominal interest rate of

9%

and an inflation rate of

9%

D.

nominal interest rate of

19%

and an inflation rate of

12%

E.

nominal interest rate of

11%

and an inflation rate of

1%