suppose a bag makes a $1000 loan to you at 5% interest when the expected an actual inflation rate ar

suppose a bag makes a $1000 loan to you at 5% interest when the expected an actual inflation rate are 0%. Before you pay back the $1000 principal and $50 interest, the inflation rate increases to 10%. Did anyone lose from the situation?

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *