If You Borrow Money at What You Believe Is an Appropriate

Multiple Choice

If you borrow money at what you believe is an appropriate interest rate for the level of expected inflation,but the actual inflation rate turns out to be much higher than you had expected,you will

A) be paying the loan back with dollars that have much less purchasing power than you had expected.
B) be paying the loan back with dollars that have much higher purchasing power than you had expected.
C) be paying the loan back with dollars that have the same purchasing power as the dollars you borrowed.
D) lose from an intended redistribution of wealth.
E) unintentionally redistribute wealth to the lender.