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Determine if each statement is true or false. Lenders lose when inflation is lower than expected. Real interest rates will never go negative. Borrowers gain
Determine if each statement is true or false. Lenders lose when inflation is lower than expected. Real interest rates will never go negative. Borrowers gain when inflation is higher than expected. If inflation is higher than the nominal interest rate, the real interest rate is negative. During the late 1970s, the United States had unusually high inflation and unusually high real interest rates
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