« previous next »

Author Question: Why are creditors harmed by unexpected inflation? a. Creditors receive lower nominal rates of ... (Read 205 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
on: Jun 30, 2018
Why are creditors harmed by unexpected inflation?
 a. Creditors receive lower nominal rates of interest when prices rise.
 b. Creditors are paid back with more valuable dollars.
 c. Creditors receive higher nominal rates of interest when prices rise.
 d. Creditors are paid back money with less spending power than they expected when the money was loaned out.

Question 2

During an inflationary period, those most likely to suffer reduced wealth are those who are holding their wealth in:
 a. gold.
 b. real estate.
  c. currency.
 d. stocks.


cam1229

  • Sr. Member
  • ****
  • Posts: 329
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Anatomical and common names for the pelvic girdle and lower extremity. Anatomical and common names for the pelvic girdle and lower extremity.
Example of coastal cities Recharge Rates Example of coastal cities Recharge Rates
The target lambda on this vehicle is slightly lower than 1.0 indicating that the PCM is attempting ... The target lambda on this vehicle is slightly lower than 1.0 indicating that the PCM is attempting ...
The developing and emerging nations have high rates of population growth The developing and emerging nations have high rates of population growth
The rates of police reported sexual offences The rates of police reported sexual offences
Video: Simple Diffusion - Ion transport

For a complete list of videos, visit our video library