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Answer to Question #118660 in Macroeconomics for Karan Bhanot

Question #118660
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
1
Expert's answer
2020-06-01T12:19:09-0400

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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