Question

Under what conditions would lenders not lose out in inflation? LO1 

   Under what conditions would lenders not lose out in inflation? LO1
Macroeconomics
Macroeconomics
David Colander 8th Edition
Chapter 16, Problem 2 ↓

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For lenders, inflation can erode the real value of the money they lend out. If the rate of inflation is higher than the interest rate on a loan, the money repaid by the borrower will have less purchasing power than the money originally lent.  Show more…

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Under what conditions would lenders not lose out in inflation? LO1
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