Marta lends money at a fixed interest rate and then inflation rises more than expected.The real interest rate she earns is
A) higher than she'd expected, and the real value of the loan rises.
B) higher than she'd expected, and the real value of the loan falls.
C) lower than she'd expected, and the real value of the loan rises.
D) lower then she'd expected, and the real value of the loan falls.
Correct Answer:
Verified
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