Suppose that Lauren is a savvy investor and expects inflation to equal 7 per cent in 2020,

but, in fact, prices rise by only 4 per cent. How would this unexpectedly low inflation rate

affect her in the following circumstances?

a The federal government cuts income tax.

b She has a fixed-rate mortgage home loan.

c She is a casual worker with no labour contract in place.

d She has invested in Treasury bonds.