# If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ? Correct Answer: D. lenders will gain at the expense of borrowers. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# If borrowers and lenders agree on a nominal interest rate and inflation turns out to be less than they had expected ?

Direct Answer & Quick Reference

The correct option is **D. lenders will gain at the expense of borrowers**.

A. neither borrowers nor lenders will gain because the nominal interest rate has been fixed by contract

B. None of these answers

C. borrowers will gain at the expense of lenders

D. lenders will gain at the expense of borrowers **(Correct Answer)**

✨ Explain with AI

Verified Key: D. lenders will gain at the expense of borrowers
Solved by 2,525+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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