If inflation turns out to be lower than expected
A)savers benefit.
B)borrowers benefit while savers are not affected.
C)savers and borrowers are equally affected.
D)savers are adversely affected but borrowers benefit.

Question

If inflation turns out to be lower than expected ​
A)savers benefit.
B)borrowers benefit while savers are not affected.
C)savers and borrowers are equally affected.
D)savers are adversely affected but borrowers benefit.

Quizplus · Accepted Answer

When inflation is lower than expected, the real value of money increases, benefiting savers because the purchasing power of their saved money is higher than they anticipated.

If Inflation Turns Out to Be Lower Than Expected ​

If Inflation Turns Out to Be Lower Than Expected