Quizzol

QUESTION:

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

a. borrowers will gain at the expense of lenders

b. lenders will gain at the expense of borrowers

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

d. none of the answer choices are correct

ANSWER:

b. lenders will gain at the expense of borrowers

Posted by Cleveland on September 9, 2024