Variable Inflation Hurts Both Debtors and Creditors Because

question 98

Multiple Choice

Variable inflation hurts both debtors and creditors because:

• A) inflation makes the money-fixed assets of creditors worth less.
• B) inflation makes the money-fixed liabilities of debtors worth less.
• C) most debtors and creditors are risk averse.
• D) most debtors and creditors are risk neutral.

---

Definitions:

Sociohistorical Context

The combination of social, historical, and cultural factors at a specific time that influences an event or phenomena.

Sigmund Freud

Originating from Austria, he was a pioneering neurologist who developed the psychoanalytic method, aiming to heal psychological disorders by facilitating conversations between an analyst and a patient.

Theory of Personality

An organized system of beliefs that attempts to explain an individual's character, behaviors, and psychological processes.

MMPI

A comprehensive psychological inventory used to assess a variety of mental disorders and personality structure.