The Classic Loser from an Unanticipated Inflation Is

question 40

Multiple Choice

The classic loser from an unanticipated inflation is

• A)the borrower who pays less nominal interest than expected.
• B)the borrower who pays more nominal interest than expected.
• C)the saver who earns less real interest than expected.
• D)the saver who earns more real interest than expected,and so should have saved more.

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Definitions:

Indicator Variable

A variable used in mathematical modeling and statistical analysis that takes on the value of 0 or 1 to indicate the absence or presence of a certain condition or feature.

Gender

A category reflecting the social roles, behaviors, activities, and characteristics that a society considers appropriate for men, women, and other gender identities.

Nominal Variable

A classification of categorical data where the order of the categories is not significant.

Dummy Variables

Variables used in regression analysis to represent subgroups of the sample in a binary form.