Use the Following to Answer Questions: Table: Anticipating Inflation -(Table: Anticipating Inflation) Using the Inflation Data in the Table

question 217

Multiple Choice

Use the following to answer questions: Table: Anticipating Inflation $$\begin{array} { l c c } \hline \text { Year } & \text { Predicted Inflation Rate } & \text { Actual Inflation Rate } \\\hline 2000 & 3 \% & 3 \% \\2001 & 3 \% & 2 \% \\2002 & 7 \% & 9 \% \\2003 & 5 \% & 4 \% \\2004 & 4 \% & 7 \% \\\hline\end{array}$$
-(Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts have fixed nominal interest rates of 10% and mature after one year. Which year did lenders gain relative to borrowers?

• A) 2000
• B) 2002
• C) 2003
• D) 2004

---

Definitions:

Substance Use Disorder

A condition in which the use of one or more substances leads to a clinically significant impairment or distress.

Tobacco Use

The act of consuming tobacco products, such as cigarettes, cigars, or chewing tobacco, often associated with numerous health risks, including cancer and cardiovascular diseases.

Short-term Consequences

Immediate, often temporary effects that follow an action or decision.

Long-term Consequences

The far-reaching effects or outcomes of an action, condition, or disorder that manifest over an extended period.