Which of the following statements is true?
A) Banks holding long-term, fixed-rate mortgages carrying low interest rates are penalized by high rates of inflation.
B) People saving for the future benefit when the inflation rate is greater than the interest rate they receive on their savings.
C) Borrowers paying back past loans are penalized if the inflation rate is greater than the interest rate they are paying on their loans.
D) All of the above.
Correct Answer:
Verified
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