a)Inflation since the Global Financial Crisis (GFC) has been much lower than people expected it to be. How has this affected home-owners who obtained fixed rate mortgages in the mid -2000s? How did it affect the banks that lent them the money?

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b)If you were taking a mortgage today, how would your expectations about inflation in next 10 years affect your decision about whether to fix your mortgage or let it vary?

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