Multiple Choice
If the expected inflation rate is 4 percent, the nominal interest rate is 6 percent, and the actual inflation rate turns out to be 2 percent, then the realized real interest rate is _____than the expected real interest rate and borrowers______relative to lenders.
A) less; gain
B) less; lose
C) greater; gain
D) greater; lose
Correct Answer:
Verified
Correct Answer:
Verified
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