Inflation, the Rate of Change of Average Prices in the Economy

Multiple Choice

Inflation, the rate of change of average prices in the economy, generally

A) increases the purchasing power of money.
B) reduces the real value of existing nominal debt.
C) increases the real value of fixed money incomes.
D) has no real effects if it is unanticipated.
E) benefits creditors if it is unanticipated.