For a given year, the nominal interest rate is 9 percent, and inflation rises to 11 percent, a 4 percent higher rate than anticipated. Which group of people is made better off by the increase in the inflation rate?
A) Those who lend at fixed interest rates
B) Those who borrow at fixed interest rates
C) Those who borrow at variable interest rates
D) Those who receive fixed incomes
E) Those who save at variable interest rates
Correct Answer:
Verified
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