High and unexpected inflation has a greater cost
A)for those who borrow than for those who save.
B)for those who hold a little money than for those who hold a lot of money.
C)for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

High and unexpected inflation erodes the purchasing power of fixed nominal wages, making it more costly for those with fixed wages compared to those whose wages adjust with inflation.

High and Unexpected Inflation Has a Greater Cost