Unanticipated High Inflation Always Means

question 186

Multiple Choice

Unanticipated high inflation always means:

• A) a loss in purchasing power for lenders.
• B) a decrease in the amount of real taxes paid by citizens and firms.
• C) a redistribution of wealth from the rich to the poor.
• D) a loss in purchasing power for both lenders and borrowers.

---

Definitions:

Net Exports

The net trade balance of a country, calculated by subtracting its total imports from its total exports.

Imports

Products and services imported from other countries for the purpose of selling them domestically.

Exports

Products or services that are created in one country and then sold to consumers in a different country.

New Home Construction

The process of building residential buildings, reflecting economic trends and influencing economic activity.