If the inflation rate unexpectedly rises from 1% to 6%,would each of the following gain or lose as a result?
a)Lars,who borrowed $50,000 last year repayable over the next 5 years at 6 percent interest.
b)Jan,who lent Lars the $50,000.
c)Arash,an elderly man living on a fixed company pension.
d)Ingrid,who receives a fixed 10 percent interest on her savings every year.
e)Svend,the owner of an electronics firm who signed an agreement with his employees paying annual wage increases of 5 percent.
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b)Jan l...
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