Business, 03.12.2019 17:31 Daisy5219

6. suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 5 percent. describe how this unexpectedly high inflation rate would or hurt the following:

a. the government
b. a homeowner with a fixed-rate mortgage
c. a union worker in the second year of a labor contract
d. a college that has invested some of its endowment in government bonds

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6. suppose that people expect inflation to equal 3 percent, but in fact, prices rise by 5 percent. d...

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