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What Does Inflation Have to Do with Wealth Redistribution

Question 128

Multiple Choice

What does inflation have to do with wealth redistribution?


A) Borrowing money has less cost, since you are paying the loan back with less purchasing power; wealth flows from lender to borrower.
B) Loaning money has less cost, since you are receiving loan payments that have less value; wealth flows from borrower to lender.
C) Since inflation is low, there is no impact of inflation on wealth redistribution.
D) Lenders gain at the expense of borrowers.
E) Pawn shops gain more at the expense of poor people.

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