If Inflation Is Correctly Anticipated,in a Transaction Between Borrowers and Lenders,inflation

question 102

Multiple Choice

If inflation is correctly anticipated,in a transaction between borrowers and lenders,inflation

• A) will not reduce purchasing power of the money paid back
• B) will redistribute purchasing power from borrowers to lenders
• C) will not redistribute purchasing power
• D) will redistribute purchasing power from to lenders to borrowers
• E) cannot be taken into consideration when a loan is negotiated

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