When the real interest rate is less than zero, then:
a. a creditor will gain purchasing power.
b. a creditor will just break even on his or her real loan return.
c. a creditor will lose purchasing power.
d. a creditor will benefit from inflation.
e. a creditor's purchasing power will not be affected, because the nominal interest rate is greater than zero.
c
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In 2011, U.S. governments (local, state, and Federal) employed roughly how many percent of the U.S. labor force?
A. 5 percent B. 16 percent C. 42 percent D. 64 percent
Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (6) might represent:
A. the payment of payroll taxes by households.
B. corporate income tax payments.
C. the purchase of basketballs by the Ogallala school district.
D. the purchase of armored personnel vehicles by government.