If Inflation Is Lower Than What Was Expected

question 23

Multiple Choice

If inflation is lower than what was expected,

• A)creditors receive a lower real interest rate than they had anticipated.
• B)creditors pay a lower real interest rate than they had anticipated.
• C)debtors receive a higher real interest rate than they had anticipated.
• D)debtors pay a higher real interest rate than they had anticipated.

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Definitions:

Satellite Television

A broadcasting service that delivers television programming via communications satellites to a receiver, expanding the reach of television signals.

Secondary Sector

Jobs that transform raw materials into consumer goods (e.g., cars, furniture).

Midcentury

A term generally used to specify the middle period of the 20th century, characterized by distinctive trends in design, culture, and politics.

Tertiary Sector

Jobs that provide services (e.g., teaching, nursing) rather than goods.