Unanticipated inflation tends to penalize
A)people who save money in financial institutions.
B)individuals who borrow money from financial institutions.
C)businesses which borrow money from financial institutions.
D)governments that have a progressive personal income tax.

Question

Quizplus · Accepted Answer

Unanticipated inflation erodes the purchasing power of money saved in financial institutions, reducing the real value of savings.

Unanticipated Inflation Tends to Penalize