If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?

Question

TuteeHUB · Accepted Answer

NA

TuteeHUB · Answer

neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

TuteeHUB · Answer

None of these answers

TuteeHUB · Answer

borrowers will gain at the expense of lenders

TuteeHUB · Answer

lenders will gain at the expense of borrowers

1.	If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?
A.	neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract
B.	None of these answers
C.	borrowers will gain at the expense of lenders
D.	lenders will gain at the expense of borrowers
Answer» E.

Discussion