54: An unexpected increase in inflation should?
None of the options
Decrease the interest rate on loans
Increase the interest rate on loans
Increase the demand for loanable funds
Answers
Answered by
11
Explanation:
Unexpected inflation affects the economic cycle. Unanticipated inflation reduces the validity of the information on market prices for economic agents. ... This leads to the cost of borrowing being higher, hence reducing economic activity because it discourages investments.
Answered by
0
Answer:
Increase in interest rate on loans
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