Unanticipated inflation
A) hurts lenders because the purchasing power of the money they collect from their borrowers is now lower.
B) hurts borrowers because they must repay their debts with money that is now worth more.
C) helps lenders because the purchasing power of the money they collect from their borrowers is now higher.
D) helps borrowers because they must repay their debts with money that is now worth less.
Correct Answer:
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