Your friend is currently engaged in a multi-level marketing
pyramid scheme, where he/she has opened up a storefront selling
Cutco knives, essential oils, and Herbalife products. Suppose that
your friend borrowed $75,000 from a bank at a fixed interest rate
of 5.25% in order to fund business operations.
a) Assume that after your friend takes out the loans, inflation
significantly rises as he/she starts paying back the loans. Does
the rise in inflation benefit or harm your friend? Why?
b)...