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Statement I: Inflation Generally Hurts Both Creditors and Debtors

Question 262

Multiple Choice

Statement I: Inflation generally hurts both creditors and debtors.
Statement II: Business owners who carry large inventories are helped by unanticipated inflation.


A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.

Correct Answer:

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