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Suppose that Americans expect inflation to be5percent in 2021, but in fact, prices fall by3percent. Describe how this unexpectedly low inflation would help or hurt
Suppose that Americans expect inflation to be5percent in 2021, but in fact, prices fall by3percent. Describe how this unexpectedly low inflation would help or hurt the following:
a). The Federal US Government.
b). A homeowner with a fixed-rate mortgage.
c). A union worker in the second year of a labor contract.
d). A college that has invested some of its endowment in Government bonds
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