Expected and Actual Costs. Suppose that a business borrows $1 million at 12 percent per year. The expected inflation rate is 6 percent, but the actual inflation rate turns out to be 8 percent. What is...

Expected and Actual Costs. Suppose that a business borrows $1 million at 12 percent per year. The expected inflation rate is 6 percent, but the actual inflation rate turns out to be 8 percent. What is the unanticipated inflation rate? Does the business gain or lose due to unanticipated inflation? If the actual inflation rate is 4 percent, does the business gain or lose? Explain your answer