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If a borrower and lender agree to an interest rate on a loan when inflation is expected to be 7 percent and inflation turns out to be 10 percent over the life of the loan, then the borrower ________ and the lender ________.
Large Corporations
Substantial business entities with significant operational scale, usually involving multi-national operations and a large number of employees.
Jurisdiction
The legal authority granted to a court or governmental entity to make decisions and enforce laws.
Diversity Jurisdiction
Federal courts' authority to hear lawsuits involving parties from different states or countries, based on their diversity of citizenship.
Corporation
A firm that is authorized by statute to act as a legal entity separate and distinct from its owners (shareholders).
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