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A) You have successfully secured the mortgage of worth in $1,000,000 from the Bank to purchase a house. After the contract has been written, inflation
A) You have successfully secured the mortgage of worth in $1,000,000 from the Bank
to purchase a house. After the contract has been written, inflation in the economy
turned out to lower than what was expected. Who gained and lost from this
development? Explain.
B) Nominal interest rates are always higher than real interest rates. true, false or uncertain and why?
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