Question: How do I know who gains or makes a loss ? How do I know how to calculate the percentage of gains and/or losses? ?

How do I know who gains or makes a loss ? How do I know how to calculate the percentage of gains and/or losses? ?

Suppose that at the beginning of a loan contract, the real interest rate is 4% and expected inflation is currently 6%. If actual inflation tumns out to be 7% over the loan contract period, then ' A. lenders gain 3%. B. lenders gain 1%. C. borrowers gain 1%. 1 D. borrowers lose 3%

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