Why Are Creditors Harmed by Unexpected Inflation

question 106

Multiple Choice

Why are creditors harmed by unexpected inflation?

• A)Creditors receive lower nominal rates of interest when prices rise.
• B)Creditors are paid back money with less spending power than when it was originally loaned out.
• C)Creditors receive higher nominal rates of interest when prices rise.
• D)Creditors are paid back with more valuable dollars.

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Definitions:

5G

The fifth generation of wireless technology, providing faster speeds, lower latency, and more connectivity for devices than previous generations.

Network Interface Card (NIC)

A Network Interface Card (NIC) is a hardware component that connects a computer to a network, allowing it to communicate with other devices and access shared resources.

Wireless Network

A communication network that uses radio waves, infrared, or satellite transmissions to connect devices without physical cables.

Network Architecture

The logical and structural layout of a network, including the physical and virtual resources and the services that enable software and hardware to communicate within a network.