Multiple Choice
If inflation is correctly anticipated, those who buy government bonds will:
A) suffer losses regardless of inflation because interest paid on government bonds is set by Congress.
B) not suffer losses because inflation does not affect the purchasing power.
C) suffer losses because they will be compensated by lower interest payments.
D) not suffer losses because they will be compensated by higher interest payments.
Correct Answer:
Verified
Correct Answer:
Verified
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