Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year given below did borrowers gain relative to lenders?
A) 2000
B) 2001
C) 2002
D) 2003

Question

Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year given below did borrowers gain relative to lenders?
A) 2000 
B) 2001 
C) 2002 
D) 2003

Quizplus · Accepted Answer

The Answer of  Reference: Ref 12-4 (Table: Anticipating Inflation) Using the inflation data in the table above, assume that all loan contracts had fixed nominal interest rates of 10 percent and matured after one year. In which year given below did borrowers gain relative to lenders?
A) 2000 
B) 2001 
C) 2002 
D) 2003

Reference: Ref 12-4 (Table: Anticipating Inflation) Using the Inflation Data