If borrowers and lenders agree on a nominal interest rate and inflation turns ou

Question - If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?

Options:

A . neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

B . None of these answers

C . borrowers will gain at the expense of lenders

D . lenders will gain at the expense of borrowers

Answer: Option D
NO EXPLANATION IS AVAILABLE FOR THIS QUESTION!

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