You can choose multiple years for this question. The solution may have one year or all five! Year Predicted inflation rate Actual inflation rate 2000 3% 3% 2001 3% 2% 2002 7% 9% 2003 5% 4% 2004 4% 7% Using the inflation data in the table above, assume that all loan contracts matured after one year, and that they all had fixed nominal interest rates of 10%. In which of the years given below did borrowers gain relative to lenders? Group of answer choices 2004 2001 2003 2002 2000
You can choose multiple years for this question. The solution may have one year or all five! Year Predicted inflation rate Actual inflation rate 2000 3% 3% 2001 3% 2% 2002 7% 9% 2003 5% 4% 2004 4% 7% Using the inflation data in the table above, assume that all loan contracts matured after one year, and that they all had fixed nominal interest rates of 10%. In which of the years given below did borrowers gain relative to lenders? Group of answer choices 2004 2001 2003 2002 2000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You can choose multiple years for this question. The solution may have one year or all five!
| Year | Predicted inflation rate | Actual inflation rate |
| 2000 | 3% | 3% |
| 2001 | 3% | 2% |
| 2002 | 7% | 9% |
| 2003 | 5% | 4% |
| 2004 | 4% | 7% |
Using the inflation data in the table above, assume that all loan contracts matured after one year, and that they all had fixed nominal interest rates of 10%. In which of the years given below did borrowers gain relative to lenders?
Group of answer choices
2004
2001
2003
2002
2000
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