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Which Statement Best Describes How the Cost of Unexpected Inflation

Question 14

Multiple Choice

Which statement best describes how the cost of unexpected inflation is distributed?


A) Unexpected inflation has a greater cost for those who borrow than those who save.
B) Unexpected inflation has a greater cost for those who hold a little money than for those who hold a lot of money.
C) Unexpected inflation has a greater cost for those whose wages increase by as much as inflation than those who are paid a fixed nominal wage.
D) Unexpected inflation has a greater cost for savers in high income tax brackets than for savers in low income tax brackets.

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