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Business, 16.03.2020 18:30 lizdeleon248

Suppose the fixed interest rate on a loan is 5.75% and the rate of inflation is expected to be 4.25%. The real interest rate is 1.5%. Suppose now that instead of 4.25%, the inflation rate unexpectedly reaches 5.5%. Who gains and who loses from this unanticipated inflation? (Mark all that apply.)

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Suppose the fixed interest rate on a loan is 5.75% and the rate of inflation is expected to be 4.25%...
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