The higher the rate of inflation,the lower the redistribution effect of inflation.

Question

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The higher the rate of inflation, the greater the redistribution effect of inflation. This is because inflation erodes the value of money and benefits debtors (as they repay loans with inflated currency) while harming creditors (as the value of the money they are repaid with is reduced). This leads to a redistribution of wealth from creditors to debtors.

The Higher the Rate of Inflation,the Lower the Redistribution Effect