Which of the Following Statements Is False

question 154

Multiple Choice

Which of the following statements is false?

• A) Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy.
• B) Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors.
• C) There are no costs or losses associated with anticipated inflation.
• D) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases.

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