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If,in a Given Period,the Rate of Inflation Turns Out to Be

Question 170

Multiple Choice

If,in a given period,the rate of inflation turns out to be lower than lenders and borrowers anticipated,the effect is that

A) the real payments by the borrowers will be lower than expected.
B) the nominal income of lenders will be higher than expected,but their real income will be lower than expected.
C) the nominal income of the lenders will be as expected,but their real income will be higher than expected.
D) both the nominal and real income of lenders will be higher than expected.
E) the real income of lenders will be higher than expected,but their nominal income will be lower than expected.

Correct Answer: