Asked by Taylor Ingram on Jun 07, 2024
Verified
In general _____ by unanticipated inflation.
A) creditors and debtors are both helped
B) creditors and debtors are both hurt
C) creditors are helped and debtors are hurt
D) creditors are hurt and debtors are helped
Unanticipated Inflation
A rate of inflation that is either higher or lower than expected.
Creditors and Debtors
Creditors are entities or individuals to whom money is owed, while debtors are those who owe money to another party.
- Analyze the impact of unanticipated inflation on creditors and debtors.
Verified Answer
MH
Mohamad HalimehJun 12, 2024
Final Answer :
D
Explanation :
Unanticipated inflation generally hurts creditors because the money they are repaid has less purchasing power than expected. Debtors benefit because they repay their loans with money that is worth less than when they borrowed it.
Learning Objectives
- Analyze the impact of unanticipated inflation on creditors and debtors.