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Gina loans George $1,000. George agrees to pay her $1,100 next year. They both expect an inflation rate of 4 percent. At the end of the year, the inflation rate turns out to be 5 percent. This unexpected change is Select one: a. good for Gina but bad for George. b. bad for both Gina and George. c. irrelevant, a deal is a deal. d. good for both George and Gina. e. good for George but bad for Gina.

Gina loans George $1,000. George agrees to pay her $1,100 next year. They both expect an inflation rate of 4 percent. At the end of the year, the inflation rate turns out to be 5 percent. This unexpected change is Select one: a. good for Gina but bad for George. b. bad for both Gina and George. c. irrelevant, a deal is a deal. d. good for both George and Gina. e. good for George but bad for Gina.

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
Section: Chapter Questions
Problem 13P
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Gina loans George $1,000. George agrees to pay her $1,100 next year. They both expect an inflation rate of 4 percent. At the end of the year, the inflation rate turns out to be 5 percent. This unexpected change is

Select one:

a.
good for Gina but bad for George.
b.
bad for both Gina and George.
c.
irrelevant, a deal is a deal.
d.
good for both George and Gina.
e.
good for George but bad for Gina.
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