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At the beginning of 2022, you opened a credit card account, which you actively used through the year and paid interest on. The card had
At the beginning of 2022, you opened a credit card account, which you actively used through the year and paid interest on. The card had a fixed nominal interest rate of 10%, and you expected inflation in 2022 to be around 1%. In reality, the economy experienced deflation of 1% in 2022. This suggests that: A. the expected real interest rate was 9%, but the actual real interest rate turned out to be 11%. The bank was better off, while you were worse off B. the expected real interest rate was 11%, but the actual real interest rate turned out to be 9%. The bank was better off, while you were worse off C. the expected real interest rate was 11%, but the actual real interest rate turned out to be 9%. The bank was worse off, while you were better off D. the expected real interest rate was 9%, but the actual real interest rate turned out to be 11%. The bank was worse off, while you were better off
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