If Both the Lender and Borrower Agree on an 8

question 169

Multiple Choice

If both the lender and borrower agree on an 8% interest rate,both expect a 4% inflation rate,and inflation turns out to be 4%,then __________ by the inflation.

• A) the borrower is hurt and the lender gains
• B) the borrower gains and the lender is hurt
• C) neither the borrower nor the lender are hurt
• D) both the borrower and lender are hurt
• E) either the borrower or the lender may be hurt

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Definitions:

Natural Tolerances

The inherent variability found within a natural process or system's parameters.

Normal Distribution

It is characterized by a symmetric shape around the mean, where data samples are more densely populated close to the mean and less so the farther they are from it.

Inside Diameter

The measure of the distance across the innermost part of a hollow object or space.

Lower Control Limit

A threshold value in statistical process control below which a process is considered to be out of control on the lower side.