Borrowers benefit and savers lose when Aany inflation occurs

Borrowers benefit and savers lose when

A.any inflation occurs.

B.deflation is higher than expected.

C.inflation is higher than expected.

D.any deflation occurs.

Solution

Option A.

Any inflation occurs.

Inflation benefit both the lender and the borrower.

When wages rise with inflation,borrower who owes money before the inflation occurs,is benefitted by the inflation.

Inflation helps the lenders to extend his or her financing system and if the prices Increase the cost of living also Increase.