If the overall rate of inflation was positive over the life, Ask an Expert

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If the overall rate of inflation was positive over the life of your mortgage, what affect would that have on the REAL value of your debt (the mortgage)?

It would decrease the real amount of debt the mortgage represents

The bank would readjust your mortgage rate yearly to account for inflation

No effect because the mortgage rate is fixed over the life of the mortgage

It would increase the real amount of debt the mortgage represents

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Financial Management, Finance

Category:- Financial Management
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