multiple choice question\nborrowers benefit from unanticipated inflation because they pay back loans with…
multiple choice question\nborrowers benefit from unanticipated inflation because they pay back loans with dollars that have ______ purchasing power than the dollars that were originally borrowed.\nless\nunchanged\ngreater\nneed help? review these concept resources.\nread about the concept
Answer
Brief Explanations:
Inflation reduces the value of money over time. When there is unanticipated inflation, the dollars borrowers pay back later have less purchasing - power than the dollars they borrowed initially. So borrowers benefit as they are repaying with "cheaper" dollars.
Answer:
A. less