Answer Happy

Question 30(Multiple Choice Worth 1 points) (04.02 MC) Suppose banks decided to charge a 17% interest rate, assuming an expected inflation rate of 5%. However, they ended up charging an interest rate of 14%, with a real interest rate of 7%. Which of the following statements holds true for the given scenario? Banks benefited, due to an unanticipated inflation of 2%. Banks benefited, due to an unanticipated inflation of 9%. O Banks benefited, due to an unanticipated inflation of 12%. O Banks faced losses, due to an unanticipated inflation of 7%. Banks faced losses, due to an unanticipated inflation of 5%.