Unxpected inflation redistributes wealth from _____.
A) creditors to debtors
B) owners of real property to owners of financial assets
C) debtors to creditors
D) the government to fixed income recipients

Question

Quizplus · Accepted Answer

Unexpected inflation causes the value of money to decrease, which means borrowers can pay back their loans with dollars that are worth less than when they borrowed. This benefits debtors (borrowers) at the expense of creditors (lenders), thus redistributing wealth from creditors to debtors.

Unxpected Inflation Redistributes Wealth from _____