As the Result of Unanticipated Inflation, Lenders Are Better Off

Multiple Choice

As the result of unanticipated inflation, lenders are better off while borrowers 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 borrowers nor lenders are better off as the result of unanticipated inflation.