Suppose That at the End of a Given Year There

Multiple Choice

Suppose that at the end of a given year there has been unanticipated inflation of 4%.Who is better off at the end of the year?

A) a bank that lent money at the beginning of the year
B) a bank that lent money at the end of the year
C) a consumer who borrowed money at the beginning of the year
D) a consumer who borrowed money at the end of the year
E) a consumer who lent money at the end of the year