How does unexpected inflation affect borrowers? Lenders? Why? What is the ex post real rate of interest? What is the ex ante real rate of interest? Answer the same questions assuming unexpected deflation. What is the Fisher Equation? What does the Fisher effect state?
How does unexpected inflation affect borrowers? Lenders? Why? What is the ex post real rate of interest? What is the ex ante real rate of interest? Answer the same questions assuming unexpected deflation. What is the Fisher Equation? What does the Fisher effect state?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:How does unexpected inflation affect borrowers? Lenders? Why? What is the ex post
real rate of interest? What is the ex ante real rate of interest? Answer the same questions
assuming unexpected deflation.
What is the Fisher Equation? What does the Fisher effect state?
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