Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it tobe. The real interest rate she pays isSelect one:O a. higher than she expected and the real value of the loan is higher than she expected.O b. higher 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 lower than she expected.O d. lower than she expected and the real value of the loan is higher than she expected. Which one of the following persons would NOT be considered unemployed?Select one:O a. Mr John, actively looking for part-time work to supplement pension incomeO b. A construction worker who has given up looking for work after 18 months without a job.O c. An auto worker vacationing in Florida during the layoff period, before the production of new modelsbegins next month. He does not know for sure whether he will be called back to work when this happens,and looked for a new job last week.O d. A college student actively searching for a summer job.

Hi! Thank you for the question but as per the guidelines, We’ll answer the first question since the…

Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it to be. The real interest rate she pays is Select one: O a. higher than she expected and the real value of the loan is higher than she expected. O b. higher 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 lower than she expected. O d lower than she expected and the real value of the loan is higher than she expected.

Yvonne takes out a fixed-interest-rate loan and then inflation turns out to be higher than she had expected it to be. The real interest rate she pays is Select one: O a. higher than she expected and the real value of the loan is higher than she expected. O b. higher 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 lower than she expected. O d lower than she expected and the real value of the loan is higher than she expected.

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 2P

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