(Solved): Suppose Lori agrees to lend her sister Holly $1000 for one year at a fixed nominal rate of interest ...

Suppose Lori agrees to lend her sister Holly $\$1000$ for one year at a fixed nominal rate of interest. Suppose further that, at the time the loan is made, Lori expects the rate of inflation to be 3 percent and Holly expects it to be 5 percent over the course of the year. If the actual inflation rate turns out to be 4 percent, then Lori will be off and Holly will be off than expected, everything else held constant. Select one: A. better; better B. worse, better C. worse; worse D. better; worse Question 11 Notyet answent. Pointrouted1 Pragquestion A decrease in the money multiplier will cause in the , everything else held constant. Select one: A. a decrease; monetary base B. an increase; money supply C. a decrease; money supply D. an increase; monetary base Notypt answered Aolnts out of 1 P Flazquestion in expected future nominal interest rates, everything else held constant, will cause lending to become more desirable TODAY. Select one: A. An increase B. Adecrease