Questions

Under what circumstances is inflation underanticipated? Who benefits from this situation (the borrower or the lender)?

Under what circumstances is inflation overanticipated? Who benefits from this situation (the borrower or the lender)?

In general, did lenders who offered fixed-interest, 30-year mortgages in the early 2000s overanticipate or underanticipate inflation?

Define: the Fisher equation and the Fisher effect. If the inflation rises from 6 to 8 percent, what happens to real and nominal interest rates, according to the Fisher effect?

What is the relationship between real money demand and the nominal interest rate? Based on this relationship, what would you expect the result would be if ATM machines were introduced to an economy?

If prices are rising in an absolute sense, then why should we analyze them relative to (i) prices of individual goods and services, and (ii) wages?

What false conclusion is made from Hume's Angel Gabriel fable and Friedman's Helicopter story?