Multiple Choice
Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it to be.The real interest rate she pays is
A) higher than she had expected,and the real value of the loan is higher than she had expected.
B) higher than she had expected,and the real value of the loan is lower than she had expected.
C) lower than she had expected,and the real value of the loan is higher than she had expected.
D) lower then she had expected,and the real value of the loan is lower than she had expected.
Correct Answer:
Verified
Correct Answer:
Verified
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