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Which of the Following Groups Benefit from an Unanticipated Rise

question 171

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Which of the following groups benefit from an unanticipated rise in the inflation rate?


Definitions:

Floating-rate Debt

A type of debt instrument whose interest payment varies with market interest rates.

Market Interest Rate

The prevailing rate of interest determined by supply and demand in the money market that borrowers must pay to obtain funds.

Floating-rate Debt

A type of debt instrument with a variable interest rate, allowing the payments to fluctuate along with market interest rates.

Market Rates

Interest rates prevailing in the money market for short-term funds or the overall financial market's current interest rates.

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