Author Question: Why are creditors harmed by unexpected inflation? a. Creditors receive lower nominal rates of ... (Read 206 times)

mcmcdaniel

  • Hero Member
  • *****
  • Posts: 550
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
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

For a complete list of videos, visit our video library