Choose who is WORSE OFF due to unexpected inflation. i. Lenders ii. Borrowers iii. Retirees
iv. Workers on fixed wages i, iii, and iv. ii, iii, and iv. i, ii, and iv. i and iv.
At the beginning of 2021 , Paris put her savings into a mutual fund that paid a nominal interest
rate of 11% a year. In 2021, the CPI increased from 120 to 132 . Hence, Paris earned a real
interest rate of percent per year.
With a partial Ricardo-Barro effect, with government deficits and. . with government surpluses
than with no Ricardo-Barro effect. the real interest rate is lower; the real interest rate is higher.
the private supply of loanable funds is lower; the private supply of loanable funds is greater. the
real interest rate is higher; the real interest rate is lower. the demand for loanable funds is larger;
the demand for loanable funds is smaller..
Choose who is WORSE OFF due to unexpected inflation. i. Lende.pdf
1. Choose who is WORSE OFF due to unexpected inflation. i. Lenders ii. Borrowers iii. Retirees
iv. Workers on fixed wages i, iii, and iv. ii, iii, and iv. i, ii, and iv. i and iv.
At the beginning of 2021 , Paris put her savings into a mutual fund that paid a nominal interest
rate of 11% a year. In 2021, the CPI increased from 120 to 132 . Hence, Paris earned a real
interest rate of percent per year.
With a partial Ricardo-Barro effect, with government deficits and. . with government surpluses
than with no Ricardo-Barro effect. the real interest rate is lower; the real interest rate is higher.
the private supply of loanable funds is lower; the private supply of loanable funds is greater. the
real interest rate is higher; the real interest rate is lower. the demand for loanable funds is larger;
the demand for loanable funds is smaller.
