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If inflation falls unexpectedly, this implies

QUESTION 9 If inflation falls unexpectedly, this implies a redistribution of purchasing power from borrowers to lenders a red

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a) A fall in the inflation unexpectedly will transfer the wealth from the borrower to the lender, the answer is "A".

b) "A"

inflation will lead to an increase in the nominal wages leaving the real wages less than before or as it is depending on the nominal wage rises.

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