All of the Following Are True for Inflation EXCEPT That

question 169

Multiple Choice

All of the following are true for inflation EXCEPT that:

• A) those on a fixed income lose purchasing power during inflationary periods.
• B) creditors do not receive the full amount of the loan because the principle and interest rates are fixed.
• C) debtors are hurt during inflationary times because the amount they pay creditors back increases.
• D) increased prices due to high inflation cause consumers to spend less money.

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