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.

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Definitions:

Local Variable

A variable declared within a function or block, having its scope limited to that block or function, making it inaccessible from the outside.

Instance Variable

A variable that, when defined within a class, ensures every object instantiated from that class possesses its own distinct copy.

Method Definition

A method definition specifies the code to be executed when the method is called, including the method's name, return type, and parameters.

New Operator

A keyword used in programming to create instances of classes by allocating memory for the objects.