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If You Were a Lender, Which of the Following Unexpected

Question 139

Multiple Choice

If you were a lender, which of the following unexpected changes in inflation would you prefer once you have issued a long term fixed rate loan?


A) ​An increase from 2% inflation to 6% inflation.
B) ​An increase from 7% inflation to 10% inflation.
C) ​A decrease from 14% inflation to 8% inflation.
D) ​A decrease from 6% inflation to 3%.

Correct Answer:

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