The real rate of interest is the nominal or stated rate of interest less inflation. If inflation rises, what implications does this have for the real cost of borrowing

Thinking as a manager, do you think unemployment is good news or bad news? Defend you answer.

• The real rate of interest is the nominal or stated rate of interest less inflation. If inflation rises, what implications does this have for the real cost of borrowing? As a manager, how would your debt strategy change during periods of high inflation?
• How closely should managers watch national economic indicators? Are there local economic indicators that you might use that would help you to better manage your day-to-day operations? What are these?
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