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:

Odds Of Exposure

The likelihood that individuals will come into contact with a specific risk factor or condition.

Case-Control Study

A study that compares individuals with a particular condition (cases) to those without (controls) to identify factors that may contribute to the condition.

Exposure Status

The classification or measurement of an individual's or group's contact with a specific environmental factor or agent.

Risk

refers to the probability of occurrence of harm or loss associated with an action or event.