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During a period of unanticipated high inflation: Group of answer choices lenders are worse off because...

During a period of unanticipated high inflation:

Group of answer choices

lenders are worse off because they are repaid with currency that is worth more

lenders are worse off because of Federal Reserve policies

borrowers are worse off because they have to pay off their loans with currency that is worth more

people on fixed incomes are worse off because their purchasing power is reduced

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Answer #2

During a period of unanticipated high inflation :People on fixed incomes are worse off because their purchasing power is reduced.

Unanticipated inflation is where people are not aware of the upcoming inflation.In case of Unanticipated inflation people are left unprotected due to this unexpected inflation.

When people face Unanticipated inflation, people on fixed incomes are worse off because their purchasing power is reduced.

During Unanticipated inflation the lenders are loosing more and the borrowers are benefitted as money looses its value.

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