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If a borrower and a lender agree on a long-term loan at a nominal interest rate that is fixed over the duration of the loan,
If a borrower and a lender agree on a long-term loan at a nominal interest rate that is fixed over the duration of the loan, how will a higher-than-expected and lower-than-expected rate of inflation impact the parties in both of these scenarios, Give numerical examples to reinforce your viewpoints?
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