You are an entrepreneur about to start your first business.Based on this statement:
A) you are most likely to be a borrower concerned mostly about the real interest rate you will earn.
B) you are most likely to be a lender concerned mostly about the real interest rate you will earn.
C) you are most likely to be a borrower concerned mostly about the nominal interest rate you will earn.
D) you are most likely to be a lender concerned mostly about the nominal interest rate you will earn.
E) you would only be concerned with whether inflation was greater or less than the nominal rate of interest based on the Fisher equation.
Correct Answer:
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