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If Inflation This Year Is Higher Than Expected, Then

Question 3

Multiple Choice

If inflation this year is higher than expected, then


A) borrowers will gain at the expense of lenders
B) lenders will gain at the expense of borrowers
C) both lenders and borrowers will gain and the government will lose
D) both lenders and borrowers will lose
E) the government will lose unless it has implemented an indexed tax system

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