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Describe How a Lender Can Lose from Inflation If the Inflation

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Essay

Describe how a lender can lose from inflation if the inflation is unanticipated and the loan is a fixed-interest-rate loan. How would a variable-interest-rate loan (one that adjusts over the contract period)eliminate these losses?
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Definitions:

Previewing

The process of examining or reviewing something before it is seen, used, or fully engaged with, such as reading a book's summary before reading the book itself.

Main Ideas

The primary or central concepts, points, or assertions in a piece of writing, speech, or argument.

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Divisions or parts into which something is split or categorized.

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The core element or main theme of a text or discourse that unifies its components.

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