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If the Actual Inflation Rate Is Less Than the Expected

Question 69

Multiple Choice

If the actual inflation rate is less than the expected inflation rate,the actual real interest rate will be ________ than the expected real interest rate.When this happens,________ will lose and ________ will gain.


A) less; borrowers; lenders
B) less; lenders; borrowers
C) greater; borrowers; lenders
D) greater; lenders; borrowers

Correct Answer:

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