Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy.
B) Inflation that is higher than expected benefits creditors, and inflation that is lower than expected benefits debtors.
C) There are no costs or losses associated with anticipated inflation.
D) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy decreases.