Question: For a given nominal interest rate, if the anticipated rate of inflation is 3 per cent but the subsequent actual rate of inflation is 5

For a given nominal interest rate, if the anticipated rate of

For a given nominal interest rate, if the anticipated rate of inflation is 3 per cent but the subsequent actual rate of inflation is 5 per cent, the likely outcome will be lenders will benefit but borrowers will not lose both borrowers and lenders will benefit borrowers will benefit and lenders will lose borrowers will benefit but lenders will lose out both borrowers and lenders will lose out

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