Multiple Choice
If inflation is more than expected, how are creditors or debtors affected?
A) Creditors receive a lower real interest rate than they had anticipated.
B) Creditors pay a lower real interest rate than they had anticipated.
C) Debtors receive a higher real interest rate than they had anticipated.
D) Debtors pay a higher real interest rate than they had anticipated.
Correct Answer:
Verified
Correct Answer:
Verified
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