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.
Correct Answer:

Verified
Correct Answer:
Verified
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