As the Result of Unanticipated Inflation, Firms Are Better Off

Multiple Choice

As the result of unanticipated inflation, firms are better off while workers are worse off if the actual inflation rate

A) is equal to the expected inflation rate.
B) exceeds the expected inflation rate.
C) is less than the expected inflation rate.
D) Neither firms nor workers are better off as the result of unanticipated inflation.