If Inflation Increases Unexpectedly,then

question 59

Multiple Choice

If inflation increases unexpectedly,then

• A)borrowers pay a higher real interest rate than they expected.
• B)lenders receive a lower real interest rate than they expected.
• C)lenders gain and borrowers gain.
• D)neither borrowers nor lenders lose.

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Definitions:

Consistency of Behavior

The degree to which an individual's actions, reactions, and behaviors remain stable over time.

Research

Exploration of the unknown; finding out something that nobody knew before one discovered it.

Time-Consuming

Activities or processes that require a considerable amount or length of time to complete.

Situationist Argument

A viewpoint in psychology that suggests behavior is determined more by situations and external factors than by personal traits or characteristics.