Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

How would an inflation rate that is below expectations be likely to affect lenders and borrowers in an economy?

  • Aeffect on lenders beneficial; effect on borrowers beneficial
  • Beffect on lenders beneficial; effect on borrowers harmful
  • Ceffect on lenders harmful; effect on borrowers beneficial
  • Deffect on lenders harmful; effect on borrowers harmful

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