Which of the following is likely to be an effect of inflation?
A) An increase in the willingness of lenders to lend money for longer periods
B) A decrease in the willingness of borrowers to borrow money for longer periods
C) A decrease in the purchasing power of lenders in the economy
D) An increase in the willingness of people to buy bonds as a hedge against rising prices
E) An increase in the willingness of people to buy physical assets as a hedge against rising prices
Correct Answer:
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