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ECONOMIC ACTIVITIES IN DEVELOPING COUNTRIES ARE LIMITED AT LEAST IN PART DUE TO LIMITED INVESTMENT, INVESTMENT LIMITED MOSTLY DUR TO INSUFFICIENT LENDING. LENDING IS MOST

ECONOMIC ACTIVITIES IN DEVELOPING COUNTRIES ARE LIMITED AT LEAST IN PART DUE TO LIMITED INVESTMENT, INVESTMENT LIMITED MOSTLY DUR TO INSUFFICIENT LENDING. LENDING IS MOST LIMITED DUE TO ECONOMIC UNCERTAINTY ... AND THE PROSPECT OF UNEXPECTED INFLATION,;

* IN LIGHT OF THIS, DESCRIBE HOW A LENDER CAN LOSE DURING INFLATION IF THE INFLATION IS UNANTICIPATED AND LOAN IS A FIX INTEREST RATE LOAN.

*hOW WOULD A VARIABLE INTEREST RATE (ONE THAT ADJUSTSTS OVER THE CONTRACT PERIOD)ELIMINATE THESE LOSSES?

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