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