When a lender underestimates the rate of inflation,

a. purchasing power is redistributed to the lender.
b. purchasing power is redistributed to the borrower.
c. the real rate of interest will be higher than expected.
d. the nominal interest rate was set too low.

b

Economics

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Soft budget constraints is an idea of:

a. Mises b. Schumpeter c. Kornai d. Keynes e. Smith

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