One Cost of a Perfectly Anticipated Inflation Is That It

question 90

Multiple Choice

One cost of a perfectly anticipated inflation is that it

• A)transfers wealth from lenders to borrowers.
• B)transfers wealth from borrowers to lenders.
• C)erodes the value of currency.
• D)damages the role of prices as signals in the economy.

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Definitions:

Divorce

The official ending of a marriage through legal proceedings by a court or a qualified entity.

Stepparent

A person who is married to a child’s biological parent and assumes a parenting role but is not the child's biological mother or father.

Stepchildren

A spouse's kids from a prior union.

Stepfamilies

Families formed when one or both partners in a marriage have children from a previous relationship.