Multiple Choice
Which of the following is true of unanticipated inflation?
A) It hurts lenders because the purchasing power of the money they collect from their borrowers is now higher.
B) It hurts borrowers because they repay their debts with money that is now worth more.
C) It helps lenders because the purchasing power of the money they collect from their borrowers is now higher.
D) It helps borrowers because they repay their debts with money that is now worth less.
Correct Answer:
Verified
Correct Answer:
Verified
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