suppose that you are running a business and you need some extra space for one ye

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suppose that you are running a business and you need some extra space for one year. Your bank tells you that you can borrow $100,000 at 0% interest to purchase a building. You consider borrowing this amount, buying the building, using it for one year, and then selling the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at the rate of 10% per year. 5.4. True or False: A high real interest rate will keep firms from borrowing to finance investment in capital, but it will not keep firms with cash from investing in capital. True False

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