Which of the following statements is false?
A) Whether you gain or lose during a period of inflation depends on whether your income rises faster or slower than the prices of the things you buy.
B) Inflation that is higher than expected benefits debtors, and inflation that is lower than expected benefits creditors.
C) There are no costs or losses associated with anticipated inflation.
D) When unanticipated inflation occurs regularly, the degree of risk associated with investments in the economy increases.

Question

Quizplus · Accepted Answer

There are costs and losses associated with anticipated inflation, such as the increased uncertainty and difficulty in making financial decisions. Additionally, anticipated inflation may lead to higher interest rates and decreased investment.

Which of the Following Statements Is False