Marta Lends Money at a Fixed Interest Rate and Then

question 117

Multiple Choice

Marta lends money at a fixed interest rate and then inflation rises more than expected.The real interest rate she earns is

• A)higher than she'd expected, and the real value of the loan rises.
• B)higher than she'd expected, and the real value of the loan falls.
• C)lower than she'd expected, and the real value of the loan rises.
• D)lower then she'd expected, and the real value of the loan falls.

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Definitions:

Subjects

Individuals or entities that are observed or experimented upon in research and studies, often used interchangeably with participants.

Observational Study

A study in which the researcher observes and records behavior or outcomes without manipulating any variables, often used in social sciences, epidemiology, and ecology.

Proportion

A part or fraction of a whole, typically expressed as a percentage or ratio.

Anecdotal Evidence

Information based on personal accounts, stories, or experiences, rather than on scientifically collected data or statistics.