A Lender Need Not Be Penalized by Inflation If the

question 96

Multiple Choice

A lender need not be penalized by inflation if the

• A)long-term rate of inflation is less than the short-term rate of inflation.
• B)short-term rate of inflation is less than the long-term rate of inflation.
• C)lender correctly anticipates inflation and increases the nominal interest rate accordingly.
• D)inflation is unanticipated by both borrower and lender.

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Definitions:

Genetic Makeup

The unique set of genes inherited from both parents that define an individual's hereditary characteristics.

Genotype

The genetic makeup of an individual organism, including all of their genes, both expressed and not expressed.

Phenotype

Phenotype is the set of observable characteristics or traits of an organism, resulting from the interaction of its genotype with the environment.

Molecule

The smallest unit of a chemical compound that can exist, consisting of two or more atoms bonded together.