Unexpected high levels of inflation aid debtors at the expense of lenders.

Name: Unexpected high levels of inflation aid debtors at the expense of lenders.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

High levels of inflation reduce the real value of money over time, meaning debtors can repay their loans with money that is worth less than when they borrowed it, effectively reducing the burden of their debt. This situation is at the expense of lenders, who receive back less in real terms than they lent out.

Unexpected High Levels of Inflation Aid Debtors at the Expense