During an Inflation, a Household with Savings of $100,000

Multiple Choice

During an inflation, a household with savings of $100,000

A) gains because inflation increases the value of their savings.
B) loses because the inflation increases the after-tax real interest rate.
C) gains because the inflation gives savers more money and so more purchasing power.
D) loses because inflation increases the real tax on the interest paid.
E) neither gains nor loses because inflation does not affect savers.