=+a. Is the real interest rate on this loan higher or lower than expected?

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Brief Principles Of Macroeconomics

ISBN: 9780324590371

5th Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 03:02 AM

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=+a. Is the real interest rate on this loan higher or lower than expected?
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=+the nominal interest rate to be paid on a loan. Then inflation turns out to be higher than they both expected.
=+b. Does the lender gain or lose from this unexpectedly high inflation? Does the borrower gain or lose?
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=+a. Is the real interest rate on this loan higher or lower than expected?

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Brief Principles Of Macroeconomics

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