QB. Remember the equation, Treat = (ETC 7T) + requilibruim- Assume that there is unexpected disinflation in the economy. In the lender and borrower market,
QB. Remember the equation, Treat = (ETC 7T) + requilibruim- Assume that there is unexpected disinflation in the economy. In the lender and borrower market, who will benefit and who will be worse? Explain why. You can explain using the contract between lender and borrower with the expected inflation rate or explain with the real interest rate
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