In general,a higher-than-anticipated inflation rate
A) helps everyone
B) hurts everyone
C) helps creditors and harms debtors
D) helps debtors and harms creditors
E) helps sellers

Question

Quizplus · Accepted Answer

Higher-than-anticipated inflation erodes the real value of money. Debtors benefit because they repay their loans with money that is worth less than expected, while creditors lose because they receive payments that have less purchasing power than anticipated.

In General,a Higher-Than-Anticipated Inflation Rate