Question: I need help with these questions can someone help me and explain it. Thanks in advance. Suppose that a borrower and a lender agree on

I need help with these questions can someone help me and explain it. Thanks in advance.

Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Then inflation turns out to belowerthan they both expected.

True or False: The real interest rate on this loan is higher than expected.

The lender (loses/gains)from this unexpectedlowerinflation, and the borrower(loses/gains) under these circumstances.

Inflation during the 1970s was much higher than most people had expected when the decade began.

Homeowners who obtained fixed-rate mortgages during the 1960s(were harmed/benefited) the unexpected higher inflation (with regard to their mortgages), and the banks that made the mortgage loans (harmed/benefited)

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