12. Holding other factors constant, an unexpected increase in the rate of inflation will have no effect on the 'real' interest rate. tend to hurt lenders because it will reduce their 'real' rate of return. increase the 'real' interest rate. tend to hurt borrowers if their incomes rise at the same rate as inflation. do none of the other options.
12. Holding other factors constant, an unexpected increase in the rate of inflation will have no effect on the 'real' interest rate. tend to hurt lenders because it will reduce their 'real' rate of return. increase the 'real' interest rate. tend to hurt borrowers if their incomes rise at the same rate as inflation. do none of the other options.
Principles of Macroeconomics (MindTap Course List)
7th Edition
ISBN:9781285165912
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Six Debates Over Macroeconomic Policy
Section: Chapter Questions
Problem 4QCMC
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