Business, 28.11.2019 02:31 tae1731

During the last tax year you lent money at a nominal rate of 6 percent. actual inflation was 1.5 percent, but people had been expecting 1 percent . this difference between actual and expected inflation a. transferred wealth from you to the borrower and caused your after-tax real interest rate to be 0.5 percentage points lower than what you had expected. b. transferred wealth from the borrower to you and caused your after-tax real interest rate to be more than 0.5 percentage points higher than what you had expected. c. transferred wealth from you to the borrower and caused your after-tax real interest rate to be more than 0.5 percentage points lower than what you had expected. d. transferred wealth from the borrower to you and caused your after-tax real interest rate to be 0.5 percentage points higher than what you had expected.

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