Business, 19.03.2020 06:48, nikejose11

Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to be lower than they both expected. (1) True or False: The real interest rate on this loan is lower than expected. The lender (2) gains/loses from this unexpected lower inflation, and the borrower (3) gains/loses under these circumstances.

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Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then i...