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Firlakuza [10]
3 years ago
15

If the inflation rate unexpectedly rises:_______.a. borrowers gain at the expense of lenders.b. lenders will gain at the expense

of borrowers.c. the real interest rate will exceed the nominal interest rate.d. there is no reason to expect that the inflation will help borrowers relative to lenders.
Business
2 answers:
Alborosie3 years ago
7 0

Answer:

a. borrowers gain at the expense of lenders

Explanation:

Inflation refers to the sustained increase of the price of a commodity over a period of time.

It can be caused due to increase in production cost or increased demand of a good or service.

The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .

Scilla [17]3 years ago
3 0

Answer:

A) borrowers gain at the expense of lenders.

Explanation:

The real interest rate that lenders earn = nominal interest rate - inflation rate. If the inflation rate increases, the real interest rate earned decreases.

The real interest rate that borrowers pay is also = nominal interest rate - inflation rate. If the inflation rate increases, the real interest rate paid decreases.

So, any increase in the inflation rate favors borrowers and hurts lenders.

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The most effective and efficient way to move forward with an idea is "create a prototype".

A prototype is an early example, model, or arrival of an item worked to test an idea or process or to go about as a thing to be reproduced or learned from. It is a term utilized in an assortment of settings, including semantics, plan, hardware, and programming.

4 0
3 years ago
Capitalization of interest is adding accrued
Anon25 [30]

It is true that capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance,  so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

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6 0
2 years ago
Delta inc. moved its entire production operation to the country of xondervan, where the company was free to dump pollutants to t
Maksim231197 [3]
If your choices are the following:
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7 0
3 years ago
Selecting a base year and expressing each amount as a percent of the base year amount is called:
Sliva [168]

The process of selecting a base year and expressing the amount as a percent of the base year amount is referred to as trend analysis. Percentage change can be calculated between two periods or over a longer period of time.

Percentage change between two periods:

<span> Subtract the earlier year from the later year. A negative difference means the change is a decrease. A positive difference means it is an increase. Then divide the change by the earlier year's balance. </span>

Percentage change over a longer period of time:

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4 0
3 years ago
In a team, if someone gets stuck with the selected tasks for the iteration, what is the immediate next step?
Serggg [28]

Answer:

a. Without wasting time, the team member has to inform the Lead/Onsite coordinator and take up another task.

Explanation:

Iteration is a repetative process, where process is repeated until it get closer to the desired result. It is important to inform the team member without wasting much of time, so that they can coordinate or team member can take up another task from the queue. Iteration planning is the collabrative exercise, team work is important as goal and task are set in a team meeting. This is considered as slower process than new algorithm process.

5 0
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