Unanticipated inflation:
A)arbitrarily "taxes" fixed-income groups
B)increases the real value of savings
C)increases the purchasing power of the dollar
D)benefits lenders at the expense of borrowers
E)does not affect lenders or borrowers

Question

Quizplus · Accepted Answer

Unanticipated inflation arbitrarily "taxes" fixed-income groups by reducing the purchasing power of their income, while those with variable incomes or assets that appreciate with inflation (such as stocks, real estate, or commodities) may be better off.

Unanticipated Inflation