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John is helped and the bank is hurt. The bank is helped and John is hurt.

In 2012, John takes out a 30-year bank mortgage loan at a fixed interest rate.He buys a house with the loan. In 2014–2018, there is a large amount of inflation. Who is hurt and who is helped by this inflation, ceteris paribus?. John is helped and the bank is hurt.

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John is helped and the bank is hurt. The bank is helped and John is hurt.

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  1. In 2012, John takes out a 30-year bank mortgage loan at a fixed interest rate.He buys a house with the loan. In 2014–2018, there is a large amount of inflation. Who is hurt and who is helped by this inflation, ceteris paribus? • John is helped and the bank is hurt. • The bank is helped and John is hurt. • John and the bank are both hurt. • John and the bank are both helped.

  2. In 2012, John takes out a 30-year bank mortgage loan at a fixed interest rate. He buys a house with the loan. In 2014–2018, there is a large amount of inflation. Who is hurt and who is helped by this inflation, ceteris paribus? • John is helped and the bank is hurt. • The bank is helped and John is hurt. • John and the bank are both hurt. • John and the bank are both helped.

  3. In 2012, John takes out a 30-year bank mortgage loan at a fixed interest rate. He buys a house with the loan. In 2014–2018, there is a large amount of inflation. Who is hurt and who is helped by this inflation, ceteris paribus? • John is helped and the bank is hurt. • The bank is helped and John is hurt. • John and the bank are both hurt. • John and the bank are both helped. • The money the bank receives in the future, after inflation, is worth less than when they loaned it out.

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