If both the lender and borrower agree on an 7% interest rate,both expect a 3% inflation rate,and inflation turns out to be 3%,then _________ by the inflation.

Question

Quizplus · Accepted Answer

Since both the borrower and lender expected a 3% inflation rate and that's exactly what the inflation rate turned out to be, neither the borrower nor the lender are hurt. The interest rate and inflation rate cancelled each other out, resulting in no gain or loss for either party.

If Both the Lender and Borrower Agree on an 7