How Are Debtors and Creditors Affected When the Economy Unexpectedly

question 111

Multiple Choice

How are debtors and creditors affected when the economy unexpectedly goes from inflation to deflation?

• A) Debtors and creditors would both have reduced real wealth.
• B) Debtors and creditors would both have increased real wealth.
• C) Debtors would gain at the expense of creditors.
• D) Creditors would gain at the expense of debtors.

---

Definitions:

Functionalism

A theoretical framework in social sciences that views society as a complex system whose parts work together to promote solidarity and stability.

Class Consciousness

Awareness of one's social class and its implications, often leading to collective political action or solidarity.

Manifest Function

The explicit, intended goals or consequences of social processes or institutions.

Latent Function

refers to the unintended or unrecognized positive consequences of a social process or structure.