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2. If the expected inflation rate was 7 percent and the actual inflation rate was 3 percent, then a. borrowers gained in real terms at

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2. If the expected inflation rate was 7 percent and the actual inflation rate was 3 percent, then a. borrowers gained in real terms at the expense of lenders. b. lenders gained in real terms at the expense of borrowers. c. borrowers and lenders were not affected. d. the government gained because it collected more in taxes. 10oo

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