Current Forecasts Say That Mild Inflation Is Expected Next Year

Multiple Choice

Current forecasts say that mild inflation is expected next year. If, however, deflation occurs instead:

A) lenders on existing fixed rate loans will gain while borrowers will lose.
B) borrowers on existing fixed rate loans will gain while lenders will lose.
C) both lenders and borrowers on existing fixed rate loans will lose.
D) both lenders and borrowers on existing fixed rate loans will gain.