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consider two scenarios. in the first, the nominal interest rate is 6%, and the expected rate of inflation is 4%. In the second, the nominal
consider two scenarios. in the first, the nominal interest rate is 6%, and the expected rate of inflation is 4%. In the second, the nominal interest rate is 5%, and the expected rate of inflation is 2%. In which scenario would you rather be the borrower?
P.S its a stupid question but could someone answer this for me and explain the answer thank you.
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