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 unanticipated?

A) A firm signs a 3-year contract with a union based on a 2 percent anticipated rate of inflation per year,and the actual rate of inflation ends up being 7 percent per year.
B) A worker receives a raise in salary that is less than the rate of inflation,because management under-predicted inflation.
C) Firms have to hire an extra worker to change prices in its store because of inflation.
D) A bank collects a lower amount of interest from a loan because inflation was under-predicted.