In the Case of an Unanticipated Increase in Inflation

question 81

Multiple Choice

In the case of an unanticipated increase in inflation:

• A)creditors with an unindexed contract are hurt because they get less than they expected in real terms.
• B)creditors with an indexed contract gain because they get more than they contracted for in nominal terms.
• C)debtors with an unindexed contract do not gain because they pay exactly what they contracted for in nominal terms.
• D)debtors with an indexed contract are hurt because they pay more than they contracted for in nominal terms.

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Definitions:

Somnambulism

Sleepwalking.

Rapid-eye-movement Sleep

A unique phase of sleep characterized by random rapid movement of the eyes, low muscle tone, and the propensity for vivid dreams.

Deep Sleep

A restorative phase of sleep known as slow-wave sleep, characterized by slow brain waves, reduced muscle activity, and limited sensory stimulation.

Enuresis

Failure to control the bladder (urination) once the normal age for control has been reached.