Suppose the fixed interest rate on a loan is 5.75% and the rate of inflation is expected to be 4.25%. the real interest rate is 1.5%. suppose now that instead of 4.25%, the inflation rate unexpectedly reaches 5.5%. who gains and who loses from this unanticipated inflation?

(mark all that apply.)
a. lenders gain from a lower real interest rate.
b. borrowers gain from a lower real interest rate.
c. borrowers lose from a lower real interest rate.
d. lenders lose from a lower real interest rate.

In which of the following games is it clearly the case that the cooperative outcome of the game is good for the two players and bad for society? a. two oil companies own adjacent oil fields over a common pool of oil, and each company decides whether to drill one well or two wells. b. two airlines dominate air travel between city a and city b, and each airline decides whether to charge a "high" airfare or a "low" airfare on flights between those two cities. c. two superpowers decide whether to build new weapons or to disarm. d. in all of the above cases, the cooperative outcome of the game is good for the two players and bad for society