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Which of the Following Is an Example of Someone with Inflationary

Question 47

Multiple Choice

Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation?


A) a consumer deciding to delay the purchase of a new home or automobile
B) a consumer who borrows money at a fixed interest rate in order to purchase a new home or automobile
C) an investor who borrows funds at an adjustable money interest rate (one that automatically increases with higher inflation)
D) a home buyer who borrows funds at a variable interest rate

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