A lender need not be penalized by inflation if the
A. short-term rate of inflation is less than the long-term rate of inflation.
B. long-term rate of inflation is less than the short-term rate of inflation.
C. lender correctly anticipates inflation and increases the nominal interest rate accordingly.
D. inflation is unanticipated by both borrower and lender.
Answer: C
You might also like to view...
Refer to the given table. Relative to column A, column B represents:Price Per UnitColumn A Units Per YearColumn B Units Per Year$20100110$308595$407080$505565$604050
A. an increase in demand. B. a decrease in supply. C. an increase in supply. D. a decrease in demand.
Which of the following statements is true?
A. As consumption increases, total utility must increase. B. Total utility increases initially and then decreases as marginal utility approaches zero. C. If marginal utility is greater than zero, total utility is increasing. D. If marginal utility is zero, total utility is at a minimum.