During inflationary times, which of the following is NOT likely occur?
A) People will change their expectations about the inflation rate.
B) Workers will try to get increases in nominal wages.
C) People will be willing to lend money for longer periods.
D) People will buy physical assets as a hedge against rising prices.

Question

During inflationary times, which of the following is NOT likely occur?  
A) People will change their expectations about the inflation rate. 
B) Workers will try to get increases in nominal wages. 
C) People will be willing to lend money for longer periods. 
D) People will buy physical assets as a hedge against rising prices.

Quizplus · Accepted Answer

During inflationary times, interest rates are likely to rise, making it less attractive for people to lend money for longer periods. Therefore, people will be less willing to lend money for longer periods, contrary to option C.

During Inflationary Times, Which of the Following Is NOT Likely