In Contrast with Unanticipated Inflation, Anticipated Inflation Implies That

Multiple Choice

In contrast with unanticipated inflation, anticipated inflation implies that

A) the government was informed about inflation.
B) most decision makers expected the general increase in the price level.
C) the increase in the general level of prices was growth of GDP.
D) the increase in the general level of prices was expected by borrowers but not lenders.