Asked by Adriana PreciousLatina on May 19, 2024
Verified
Unanticipated inflation penalizes:
A) those who are saving.
B) those who are borrowing.
C) governments.
D) those who are in high-growth industries where wages are growing faster than prices.
E) those who can't find jobs at any wage rate.
Unanticipated Inflation
Inflation that occurs when the general level of prices rises at a rate that was not forecasted or expected by consumers, businesses, or economists.
Saving
The portion of income not spent on current consumption but rather set aside for future use.
Borrowing
The act of obtaining funds from another party with the promise to repay the principal amount along with interest or other charges.
- Gain an insight into how both foreseen and unforeseen inflationary trends affect debtors, creditors, and the economic system as a whole.
Verified Answer
AM
Andile MhlabaneMay 25, 2024
Final Answer :
A
Explanation :
Unanticipated inflation penalizes those who are saving because the value of their savings decreases as prices rise.
Learning Objectives
- Gain an insight into how both foreseen and unforeseen inflationary trends affect debtors, creditors, and the economic system as a whole.