1. The ex ante real interest rate can differ from the ex post real interest rate because a. banks have monopoly power. b. borrowers and lenders are fully rational. c. holding money has an opportunity cost. d. inflation is uncertain. 2. Higher-than-expected inflation a. benefits both creditors and debtors. b. benefits creditors but hurts debtors. c. hurts creditors but benefits debtors. d. hurts both creditors and debtors. 3. The natural rate of unemployment is also referred to as a. cyclical unemployment. b. the non-accelerating inflation rate of unemployment (NAIRU). c. Okun's Law. d. the Phillips Curve. 4. According to the theory of adaptive expectations, people form inflation expectations based on a. animal spirits. b. expert forecasts. c. personal experience. d. recent inflation. 5. Out of the following options, choose the most liquid asset. a. cash b. corporate bonds c. money deposited in a savings account d. mortgage loans