Suppose That at the End of a Given Year There

question 81

Multiple Choice

Suppose that at the end of a given year there has been unanticipated inflation of 4%.Who is better off at the end of the year?

• A)a bank that lent money at the beginning of the year
• B)a bank that lent money at the end of the year
• C)a consumer who borrowed money at the beginning of the year
• D)a consumer who borrowed money at the end of the year
• E)a consumer who lent money at the end of the year