Business, 02.10.2019 23:00 LtPeridot

Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. over the life of the loan, the inflation rate was much higher than anticipated. gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. over the life of the loan, the inflation rate was much higher than anticipated. how did inflation affect gabriela or the bank? did inflation affect gabriela or the bank?

inflation benefited the bank because the money gabriela repaid the loan with was worth more than expected.

inflation benefited the bank because interest rates on fixed-rate loans rise at the same rate as the inflation rate.

inflation benefited gabriela because she repaid the loan with money that was worth less than expected.

inflation benefited gabriela because interest rates on fixed-rate loans are lowered when inflation rates rise.

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Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. over the...

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