Variable inflation hurts both debtors and creditors because:
A) inflation makes the money-fixed assets of creditors worth less.
B) inflation makes the money-fixed liabilities of debtors worth less.
C) most debtors and creditors are risk averse.
D) most debtors and creditors are risk neutral.

Question

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The Answer of Variable inflation hurts both debtors and creditors because:
A) inflation makes the money-fixed assets of creditors worth less.
B) inflation makes the money-fixed liabilities of debtors worth less.
C) most debtors and creditors are risk averse.
D) most debtors and creditors are risk neutral.

Variable Inflation Hurts Both Debtors and Creditors Because