Inflation discourages lending but encourages borrowing

Name: Inflation discourages lending but encourages borrowing
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inflation reduces the real value of money over time, which discourages lending because the money repaid will have less purchasing power. Conversely, it encourages borrowing because borrowers can repay their loans with money that is worth less than when they originally borrowed it.

Inflation Discourages Lending but Encourages Borrowing