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If the Anticipated Rate of Inflation Is 3% but the Subsequent

Question 25

Multiple Choice

If the anticipated rate of inflation is 3% but the subsequent actual rate of inflation is 5%, the likely outcome will be that the purchasing power of money will:


A) fall and lenders will benefit.
B) increase and borrowers will benefit.
C) fall and borrowers will benefit.
D) increase and lenders will benefit.

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