If Actual Inflation Is Lower Than Expected Inflation

question 38

Multiple Choice

If actual inflation is lower than expected inflation,

• A) there is a redistribution of wealth from borrowers to lenders.
• B) there is a redistribution of wealth from lenders to borrowers.
• C) there is no redistribution of wealth, but the total wealth in the economy increases.
• D) there is no redistribution of wealth, but the total wealth in the economy decreases.

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