When Actual Inflation Is Greater Than Expected Inflation

question 11

Multiple Choice

When actual inflation is greater than expected inflation,

• A)unemployment rises,according to Phillips-curve analysis.
• B)cyclical unemployment rises,according to Phillips-curve analysis.
• C)there are transfers from borrowers to lenders.
• D)there are transfers from lenders to borrowers.

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Definitions:

Capital Expansion

refers to the growth of a company's capital assets through investments in new facilities, equipment, or the acquisition of other firms.

Inflationary Pressures

Economic conditions or factors that lead to an increase in the general price level of goods and services.

U.S. Currency

The form of money issued by the United States government, primarily in the form of Federal Reserve notes (dollars).

U.S. Assets

Properties, investments, and other financial resources owned by individuals, businesses, and the government in the United States.