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Answer to Question #118432 in Macroeconomics for Karan Bhanot
Question #118432
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
John gained from this development because the lower inflation reduced the cost of mortgage and he ended up paying less amount than agreed.
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