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Which of the Following Is FALSE, If an Increase in the Inflation

Question 16

Multiple Choice

Which of the following is FALSE, if an increase in the inflation rate cannot be perfectly anticipated?


A) there will be a redistribution of income and wealth
B) debtors will benefit while creditors will lose
C) the holder of an indexed government bond will lose
D) the government will gain real tax revenue
E) the real value of government debt will decline

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