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If Inflation Is Higher Than Expected,this Helps Borrowers (By Reducing

question 174

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If inflation is higher than expected,this helps borrowers (by reducing the real interest rate they pay)and hurts lenders (by reducing the real interest rate they receive).


Definitions:

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.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

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