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Answer to Question #117788 in Macroeconomics for Karan Bhanot
Question #117788
John secured the bank's $2,000 mortgage to buy a car. After the contract was written it turned out that inflation in the economy was lower than expected. Who gained from this development and who lost? Explain
Expert's answer
Due to inflation in economy John gained and bank lost as the rate decreases so john need to pay less money
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