Unanticipated Inflation Tends to Penalize

question 42

Multiple Choice

Unanticipated inflation tends to penalize

• A)people who save money in financial institutions.
• B)individuals who borrow money from financial institutions.
• C)businesses which borrow money from financial institutions.
• D)governments that have a progressive personal income tax.

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Definitions:

Quantity Demanded

The amount of a product or service consumers are willing and able to purchase at a given price.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price within a certain time period.

Supply Unchanged

A situation in which the quantity of a good or service available in the market does not increase or decrease over a period.

Quantity Supplied

The volume of a good or service that manufacturers are prepared and able to offer for sale at an established price within a given interval.