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8. Remember to keep answers concise. a. Who would benefit the most from unanticipated inflation –...

8. Remember to keep answers concise.

a. Who would benefit the most from unanticipated inflation – borrowers or creditors? Explain why.

b. If GDP, inflation, and interest rates increased, and the unemployment rate decreased, what phase of the business cycle would you assume the economy is in? Briefly explain.

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