Unanticipated high inflation always means
A) a loss in purchasing power for lenders.
B) a decrease in the amount of real taxes paid by citizens and firms.
C) a redistribution of wealth from the rich to the poor.
D) Each of these answers is correct.

Question

Quizplus · Accepted Answer

Unanticipated high inflation always means a loss in purchasing power for lenders, as the amount of money they lend does not increase with the inflation rate, leading to a decrease in the value of the money they receive back. The other options are not necessarily true in all cases of high inflation.

Unanticipated High Inflation Always Means