Economies with very high current and expected inflation rates
A) will have a significant long-term debt market.
B) will have debt instruments with interest rates indexed to the inflation rate.
C) will favor long-term financing over short-term.
D) will have very low interest rates.

Question

Quizplus · Accepted Answer

In economies with high inflation, debt instruments are often indexed to inflation to protect lenders from the eroding value of money.

Economies with Very High Current and Expected Inflation Rates