Question

what is the impact of high cost of borrowing on the borrowers?​

Answer 1

→ If wages increase with inflation, and if the borrower already owed money before the inflation occured , the inflation benifits the borrowers .

Answer 2

$\large{\bf{\red{\underline{\underline{ǫᴜᴇsᴛɪᴏɴ}}}}}$

ᴡʜᴀᴛ ɪs ᴛʜᴇ ɪᴍᴘᴀᴄᴛ ᴏғ ʜɪɢʜ ᴄᴏsᴛ ᴏғ ʙᴏʀʀᴏᴡɪɴɢ ᴏɴ ᴛʜᴇ ʙᴏʀʀᴏᴡᴇʀs?

$\large{\sf{\pink{\underline{\underline{ᴀɴsᴡᴇʀ}}}}}$

ᴅᴇғʟᴀᴛɪᴏɴ ᴇɴsᴜʀᴇs ᴛʜᴀᴛ ʙᴏʀʀᴏᴡᴇʀs ᴡʜɪᴄʜ ʟᴏᴏᴛ ᴛᴏ ᴘᴜʀᴄʜᴀsᴇ ᴀssᴇᴛs ʟᴏsᴇ sɪɴᴄᴇ ᴀɴ ᴀssᴇᴛ ʙᴇᴄᴏᴍᴇs ᴡᴏʀᴛʜ ʟᴇss ɪɴ ᴛʜᴇ ғᴜᴛᴜʀᴇ ᴛʜᴀɴ ᴡʜᴇɴ ɪᴛ ᴡᴀs ʙᴏᴜɢʜᴛ. ... ᴅᴜʀɪɴɢ ᴅᴇғʟᴀᴛɪᴏɴ, ᴛʜᴇ ʟᴏᴡᴇʀ ʟɪᴍɪᴛ ɪs ᴢᴇʀᴏ. ʟᴇɴᴅᴇʀs ᴡᴏɴ'ᴛ ʟᴇɴᴅ ғᴏʀ ᴢᴇʀᴏ ᴘᴇʀᴄᴇɴᴛ ɪɴᴛᴇʀᴇsᴛ. ᴀᴛ ʀᴀᴛᴇs ᴀʙᴏᴠᴇ ᴢᴇʀᴏ, ʟᴇɴᴅᴇʀs ᴍᴀᴋᴇ ᴍᴏɴᴇʏ ʙᴜᴛ ʙᴏʀʀᴏᴡᴇʀs ʟᴏsᴇ ᴀɴᴅ ᴡᴏɴ'ᴛ ʙᴏʀʀᴏᴡ ᴀs ᴍᴜᴄʜ.

$\large{\bf{\blue{\underline{\underline{Thanks}}}}}$