Which of the Following Is Not an Example of Inflation

Multiple Choice

Which of the following is not an example of inflation causing a redistribution of income because the inflation was unexpected?

A) Firms have to hire extra workers to change prices because of inflation.
B) A firm signs a 4-year contract with a union based on a 3% expected rate of inflation per year, and the actual inflation rate ends up being 5% per year.
C) An employee receives an increase in salary that is less than the rate of inflation because management under-predicted inflation.
D) A bank collects a lower amount of interest from a loan because inflation was predicted to be 2% but was actually 4%.