Marta lends money at a fixed interest rate and then inflation turns out to be higher than sh had expected it to be. The real interest rate she earns is Select one: O a. higher than she expected and the real value of the loan is higher than she expectec O b. lower than she expected and the real value of the loan is lower than she expected.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
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Chapter6: Measuring The Cost Of Living
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Marta lends money at a fixed interest rate and then inflation turns out to be higher than she
had expected it to be. The real interest rate she earns is
Select one:
O a. higher than she expected and the real value of the loan is higher than she expected.
O b. lower than she expected and the real value of the loan is lower than she expected.
O c. lower than she expected and the real value of the loan is higher than she expected.
O d. higher than she expected and the real value of the loan is lower than she expected.
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Transcribed Image Text:Marta lends money at a fixed interest rate and then inflation turns out to be higher than she had expected it to be. The real interest rate she earns is Select one: O a. higher than she expected and the real value of the loan is higher than she expected. O b. lower than she expected and the real value of the loan is lower than she expected. O c. lower than she expected and the real value of the loan is higher than she expected. O d. higher than she expected and the real value of the loan is lower than she expected. Next page is page uestrons ere to search
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