Question
Suppose expected inflation was 2% and actual inflation was 4%. Then the ex post real interest rate was ____ than the ex ante real interest
Suppose expected inflation was 2% and actual inflation was 4%. Then the ex post real interest rate was ____ than the ex ante real interest rate and there was a redistribution of wealth from ____.
a
higher; borrowers to lenders
b
higher; lenders to borrowers
c
lower; borrowers to lenders
d
lower; lenders to borrowers
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
