If inflation is higher than we expected, this will result in a real interest rate than expected and a redistribution of wealth from to . Group of answer choices higher, borrowers, lenders None of these options lower, borrowers, lenders lower, lenders, borrowers

Suppose there an unexpected increase in inflation. Then:Group of answer choicesBorrowers and lenders are worse off by the same amountThere is a redistribution from lenders to borrowersBorrowers and lenders are better off by the same amountThere is a redistribution from borrowers to lenders

Inflation that is ________ than what is expected benefits ________ and hurts ________. a. greater; lenders; borrowers b. greater; lenders; no-one c. less; borrowers; lenders d. less; lenders; borrowers

If borrowers and lenders anticipate that the rate of inflation will be 5%, but instead it turns out to be 3%, which of the following is likely to occur? a. Lenders wish that they had made fewer loans. b. Borrowers wish that they had borrowed more money. c. The real interest rate is higher than expected. d. Insufficient loans will have been made by lenders to maintain profit levels.

If both the lender and borrower agree on an 8% interest rate, both expect a 4% inflation rate, and inflation turns out to be 4%, then _____ by the inflationGroup of answer choicesboth the borrower and lender are hurteither the borrower or the lender may be hurtthe borrower is hurt and the lender gainsneither the borrower nor the lender are hurtthe borrower gains and the lender is hurt

Excessive growth in money supply leads tohigh inflationGroup of answer choicesno effect to the economyhigh inflationno inflationlow inflationNext