Current Forecasts Say That Mild Inflation Is Expected Next Year

question 194

Multiple Choice

Current forecasts say that mild inflation is expected next year. If, however, deflation occurs instead:

• A) lenders on existing fixed rate loans will gain while borrowers will lose.
• B) borrowers on existing fixed rate loans will gain while lenders will lose.
• C) both lenders and borrowers on existing fixed rate loans will lose.
• D) both lenders and borrowers on existing fixed rate loans will gain.

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Definitions:

Organizational Behavior Modification

A strategy management utilizes to improve employee productivity and behavior through a system of rewards and punishments.

Biased

Having a prejudice in favor or against something, often considered to be unfair.

Performance Management Process

A continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization.

Annual Review

A yearly evaluation, often in the context of employment, where an individual's performance, achievements, and goals are assessed.