What is an effect of expected inflation?
A) It increases wages.
B) It increases the incentive to save.
C) It benefits lenders and borrowers.
D) It changes real interest rates.

Name: What is an effect of expected inflation? A) It increases wages. B) It increases the incentive to save. C) It benefits lenders and borrowers. D) It changes real interest rates.
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Question

Quizplus · Accepted Answer

Expected inflation often leads to an increase in wages as workers demand higher pay to keep up with the anticipated rise in prices.

What Is an Effect of Expected Inflation