Business
Business, 30.07.2021 03:00, aalejah25

For questions 8 and 9 assume that the equilibrium interest rate is 5%. For different value of expected inflation and actual inflation find the real interest rate and whether wealth is transferred from borrowers to lenders (or vice versa). Em = 3%; 7 = 3.5%
a. 4.5%; benehts borrowers
b. 4.5%; benefits lenders
c. 5.5%; benefits borrowers
d. 5.5%; benefits lenders

answer
Answers: 1

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For questions 8 and 9 assume that the equilibrium interest rate is 5%. For different value of expect...

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