An Unstable Inflation Rate

question 50

Multiple Choice

An unstable inflation rate

• A) always redistributes real income from lenders to borrowers.
• B) always redistributes real income from borrowers to lenders.
• C) adds to the risk of borrowing and lending and interferes with long-run financial planning.
• D) makes goods and services too expensive.
• E) always redistributes real income from taxpayers to the government.

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