Answer:
1) False
when the inflation is lower than expected, the real interest rate will be higher, since
real interest rate = Nominal interest rate - inflation.
2) Gains
In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.
3) Loses
In case of unexpected lower inflation the lender gains and the borrower loses.This is because real value of the loan increases due to lower inflation.
C Is The Answer I Just Took This My E2020.
Answer:
4. compounding daily
Explanation:
The higher the compounding rate , the higher the compound interest. Compounding daily would therefore yield the highest amount of money.
I hope my answer helps you