If the rate of inflation in a given time period turns out to be lower than lenders and borrowers anticipated, then the effect will be a:

a. redistribution of wealth from lenders to borrowers.
b. net gain in purchasing power for borrowers relative to lenders.
c. net loss in purchasing power for lenders relative to borrowers.
d. redistribution of wealth from borrowers to lenders.


d

Economics

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In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists

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Economics

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What will be an ideal response?

Economics