Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy decreases.
B) Inflation that is higher than expected benefits debtors and inflation that is lower than expected benefits creditors.
C) Inflation improves the balance of trade as exports appear relatively cheaper to overseas buyers and imports become relatively more expensive.
D) There are no costs or losses associated with inflation when it is fully anticipated.