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Suppose you are about to borrow $18,000 for four years to buy a new car. Which of these situations would be preferred? A. The interest

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Suppose you are about to borrow $18,000 for four years to buy a new car. Which of these situations would be preferred? A. The interest rate on the loan is 13%, and the annual inflation rate over the next four years is expected to average 10%. B. The interest rate on the loan is 7%, and the annual inflation rate over the next four years is expected to average 6%

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