If Actual Inflation Is Greater Than the Expected Rate of Inflation

question 32

Multiple Choice

If actual inflation is greater than the expected rate of inflation, then probably

• A)the borrowers are made better off than lenders.
• B)the borrowers are made worse off than lenders.
• C)creditors gain at the expense of borrowers.
• D)savings accounts have increased in real terms.

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Definitions:

Observational Learning

Observational learning is the process of learning new behaviors by observing and imitating the actions of others.

Modeling

A social learning process where individuals learn behaviors, skills, or attitudes by observing others, particularly those they view as role models.

Operant Conditioning

An educational method where the intensity of an action is altered through rewards or penalties.

Instrumental

Instrumental refers to something that serves as a means to an end or is used to achieve a particular purpose.