High and Unexpected Inflation Has a Greater Cost

question 42

Multiple Choice

High and unexpected inflation has a greater cost

• A)for those who borrow than for those who save.
• B)for those who hold a little money than for those who hold a lot of money.
• C)for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation.
• D)All of the above are correct.

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Definitions:

Future Cash Flows

Estimates of the amount of money that will be received or paid out by a company in the future.