You Agree to Lend $1,000 for One Year at a Nominal

question 111

Multiple Choice

You agree to lend $1,000 for one year at a nominal interest rate of 10%.You anticipate that inflation will be 4% over that year.If inflation is instead 3% over that year,which of the following is true?

• A)The real interest rate you earn on your money is lower than you expected.
• B)The purchasing power of the money that will be repaid to you will be lower than you expected.
• C)The person who borrowed the $1,000 will be worse off as a result of the unanticipated decrease in inflation.
• D)The real interest rate you earn on your money will be negative.

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Definitions:

Slavery Changes

Refers to the historical evolutions and transformations in the institution of slavery over time, affecting laws, practices, and societal attitudes.

Enslaved Women

Women who were subjected to slavery, focusing on their unique experiences, struggles, and resilience in the face of inhuman conditions and systemic oppression.

Violent Uprisings

Insurrections characterized by force and aggression, aiming to challenge or overthrow established authority.

Native Guards

Historical units of African American soldiers, particularly during the Civil War, challenging racial stereotypes and fighting for freedom and recognition.