Economics Multiple Choice Question – 28 December 2021

When the rate of inflation is lower than was expected, what is the likely impact on both lenders and borrowers in an economy?

Select ONE answer:

1. effect on lenders – beneficial & effect on borrowers – beneficial
2. effect on lenders – beneficial & effect on borrowers – harmful
3. effect on lenders – harmful & effect on borrowers – beneficial
4. effect on lenders – harmful & effect on borrowers – harmful

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Economics KS4 and KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.