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The textbook mentions that the market for high-end chocolates and the market for the cocoa, from...

The textbook mentions that the market for high-end chocolates and the market for the cocoa, from which such chocolates are made, are not equally well described by the demand and supply analysis. Which of the two products is better described, and why?

With respect to lenders and debtors, expected inflation ______ neutral and unexpected inflation ______ neutral.

a. is not; is not b. is; is not
c. is not; is d. is; is
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Answer #1

Option B is correct.

With respect to lenders and debtors, expected inflation is neutral and unexpected inflation is not neutral.

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