header bg

Scan QR code or get instant email to install app


Under what conditions is inflation most likely to shift wealth from lenders to borrowers?

A Only when inflation is unexpected.

Inflation that is unexpected, or higher than expected, shifts wealth from lenders to borrowers. Unexpected deflation has the opposite effect. Because interest rates include a premium for expected inflation, an inflation rate that matches expectations does not shift wealth from lenders to borrowers

Related Information


Leave a Reply

Your email address will not be published. Required fields are marked *