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Suppose individuals expected inflation in a given year to be around 3%, but it actually ended up being 10%. Given this information, we can assume

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Suppose individuals expected inflation in a given year to be around 3%, but it actually ended up being 10%. Given this information, we can assume that benefited from this fact, since the real interest rate was than the equilibrium rate lenders, higher O lenders, er O borrowers, higher O borrowers, lower

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