Suppose your roommate tells you the following: "If I have to pay a fixed interest rate of 4% on my student loans, then an increase in inflation will make me better off". This statement is: * O True, because your roommate will repay her loan with less valuable dollars. False, because a 4% interest rate is a good deal, no matter what the inflation rate is. O True, because inflation increases her purchasing power. O Uncertain, because it depends on whether inflation is more or less than 4%, 10. A private university in Lebanon is currently building a new hospital. This will be classified in the GDP as because Government purchases; the construction constitutes government expenditure Investment; it increases the capital stock O Net exports; most construction workers are foreigners Consumption; it will provide medical services to consumers