If the mortgage-tilt problem does not exist in an economy, it implies that the_____ rate in the economy is zero percent.

Question

Quizplus · Accepted Answer

The mortgage-tilt problem refers to the increasing burden of fixed-rate mortgage payments over time when inflation rates are high, as the real value of money decreases. If this problem does not exist, it implies that the inflation rate is zero percent, ensuring the real and nominal value of mortgage payments remain constant over time.

If the Mortgage-Tilt Problem Does Not Exist in an Economy