QuestionMay 24, 2025

Which one of.the following is not an economic consequence of unanticipated inflation? Creditors are harmed by inflation because the real value of the payments they receive is reduced if the interest payments are fixed. Debtors benefit from inflation because the real value of their payments declines if the interest payments are fixed. Elderly people on fixed incomes are harmed by inflation because the purchasing power of their incomes declines. There is a redistribution of income from debtors to creditors.

Which one of.the following is not an economic consequence of unanticipated inflation? Creditors are harmed by inflation because the real value of the payments they receive is reduced if the interest payments are fixed. Debtors benefit from inflation because the real value of their payments declines if the interest payments are fixed. Elderly people on fixed incomes are harmed by inflation because the purchasing power of their incomes declines. There is a redistribution of income from debtors to creditors.
Which one of.the following is not an economic consequence
of unanticipated inflation?
Creditors are harmed by inflation because the real value of the
payments they receive is reduced if the interest payments are
fixed.
Debtors benefit from inflation because the real value of their
payments declines if the interest payments are fixed.
Elderly people on fixed incomes are harmed by inflation because
the purchasing power of their incomes declines.
There is a redistribution of income from debtors to creditors.

Solution
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Answer

There is a redistribution of income from debtors to creditors. Explanation 1. Identify Economic Consequences Unanticipated inflation typically harms creditors, benefits debtors, and reduces purchasing power for those on fixed incomes. It redistributes income from creditors to debtors, not the other way around.

Explanation

1. Identify Economic Consequences<br /> Unanticipated inflation typically harms creditors, benefits debtors, and reduces purchasing power for those on fixed incomes. It redistributes income from creditors to debtors, not the other way around.
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