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Ms. Tan borrowed $1,000 from her bank for one year at an interest rate of 10 percent. During that year, the price level went up

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Ms. Tan borrowed $1,000 from her bank for one year at an interest rate of 10 percent. During that year, the price level went up by 15 percent. Which of the following statements is correct? {1 mark]I a You scored 1 I 1 mark Ms. Tan's repayment will give the bank greater purchasing power than it Originally loaned her. Ms. Tan's repayment will give the bank the same purchasing power that it originally loaned her. Ms. Tan's repayment will give the bank less purchasing power than it originally loaned her. Ms. Tan will be asked to repay the bank fewer dollars than she initially borrowed

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