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Business, 02.04.2021 03:20 NFMZombie

Suppose that people expect inflation to equal 6 percent, but in fact, prices rise by 4 percent. Indicate whether this unexpectedly low inflation rate helps or hurts each of the following groups or individuals.

- The government (Hurts/Helps)

- A homeowner with a fixed-rate mortgage (Hurts/Help)

- The union worker in the second year of a labor contract. (Hurts/Help)

- A college that has invested some of its endowment in government bonds that are not indexed Treasury bonds (Hurts/Help)

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Suppose that people expect inflation to equal 6 percent, but in fact, prices rise by 4 percent. Ind...
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