Business, 16.11.2019 02:31 kevintino

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.)
a. lenders gain from a lower real interest rate.
b. borrowers gain from a lower real interest rate.
c. borrowers lose from a lower real interest rate.
d. lenders lose from a lower real interest rate.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:40

Which of the following actions is most likely to result in a decrease in the money supply? a. the discount rate on overnight loans is lowered. b. the government sells a new batch of treasury bonds. c. the federal reserve bank buys treasury bonds. d. the required reserve ratio for banks is decreased. 2b2t

Answers: 2

Answer

Business, 22.06.2019 01:20

All of the industries and businesses in the country of marksenia are privately owned and sell products at different prices that are not controlled by the government or any other organizational body. consumers in marksenia are free to buy as much of the products as they like from the businesses they want. the country of marksenia has a

Answers: 1

Answer

Business, 22.06.2019 02:00

Corporations with suppliers, vendors, and customers all over the globe are referred to as : a) global corporations b) international corporations c) multinational corporations d) multicultural corporations

Answers: 2

Answer

Business, 22.06.2019 06:10

Investment x offers to pay you $5,700 per year for 9 years, whereas investment y offers to pay you $8,300 per year for 5 years. if the discount rate is 6 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y $ if the discount rate is 16 percent, what is the present value of these cash flows? (do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) present value investment x $ investment y

Answers: 1

Answer

You know the right answer?

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

Questions