Question

Study site is Owl’s Head just to the east of Fundy National Park and the village of Alma, New Brunswick

Now that you’ve made some basic observations of our study site, in 200 words or less write a short profile that tells us what type of mass wasting event occurred here, if it is old or fresh, and what might happen in the future at this site, maybe 50 to 100 years from now. Provide evidence for your profile summary. (4)

Answer 1

Country	Nominal Interest Rate	Inflation Rate	Real Interest Rate
A	2.49	2.11	0.38
B	3.34	2.16	1.18
C	4.05	1.89	2.16
D	1.30	2.15	-0.85

Real Interest Rate = Nominal Rate - Inflation Rate

2) As a borrower I will want to borrow in Country D. Here I will borrow at @1.30 but return the money @-0.85. Since the real Interest rate is negative it will be beneficial for me.

3) As a Lender I will like to lend in Country C. The highest real interest rate is in Country D which means I will recieve highest returns in Country C.

Lenders are hurt by unanticipated inflation because the money they get paid back has less purchasing power than the money they loaned out. Borrowers benefit from unanticipated inflation because the money they pay back is worth less than the money they borrowed.