If the Interest Rate Paid by Borrowers and the Interest

question 66

Multiple Choice

If the interest rate paid by borrowers and the interest rate received by savers accurately reflect the realized rate of inflation,

• A) borrowers gain and savers lose.
• B) savers gain and borrowers lose.
• C) both borrowers and savers lose.
• D) neither borrowers nor savers gain nor lose.
• E) both borrowers and savers gain.

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Definitions:

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