In what circumstances would lenders most benefit?
A)when there is an unanticipated decrease in inflation
B)when there is an anticipated increase in inflation
C)when there is an unanticipated increase in inflation
D)when there is an anticipated decrease in inflation

Question

Quizplus · Accepted Answer

Lenders benefit from an unanticipated decrease in inflation because the real value of the money they are repaid is higher than expected, increasing their purchasing power.

In What Circumstances Would Lenders Most Benefit