2 years ago

How could creditors avoid being hurt more than borrowers during periods of high inflation

1 answer:

5 0

Answer:

During an unanticipated inflation, debtors get hurt less than creditors because they repay their loans with less worthy money. Therefore, creditors could avoid being hurt more than debtors during period of high inflation by increasing interest rates of loans. Which will secure the value of borrowed money.

Explanation:

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