Which of the Following Is True of Unanticipated Inflation

question 14

Multiple Choice

Which of the following is true of unanticipated inflation?

• A) It hurts lenders because the purchasing power of the money they collect from their borrowers is now higher.
• B) It hurts borrowers because they repay their debts with money that is now worth more.
• C) It helps lenders because the purchasing power of the money they collect from their borrowers is now higher.
• D) It helps borrowers because they repay their debts with money that is now worth less.

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Definitions:

Social Loafing

The tendency for individuals to exert less effort to achieve a goal when they work in a group than when they work alone.

Shared Norms

Established behaviors or beliefs that are accepted and adhered to by a group or society.

Group Socialisation

Dynamic relationship between the group and its members that describes the passage of members through a group in terms of commitment and of changing roles.

Role Transition

The process of changing from one role to another, which can involve acquiring new identities, responsibilities, and behaviors.