During periods of rising inﬂation, there is a transfer of wealth from _____.
A) the government to taxpayers
B) the young to the elderly
C) the poor to the rich
D) lenders to borrowers

Question

Quizplus · Accepted Answer

During periods of rising inflation, borrowers benefit because they repay their loans with money that is worth less than when they borrowed it, effectively transferring wealth from lenders to borrowers.

During Periods of Rising Inﬂation, There Is a Transfer of Wealth