Answer
If inflation is less than expected, creditors benefit.
Work Step by Step
If inflation is less than expected, then debtors have to work longer to come up with the same dollar amount to pay their creditors.
Principles of Economics, 7th Edition
by Mankiw, N. Gregory
Published by
South-Western College
ISBN 10:
128516587X
ISBN 13:
978-1-28516-587-5
Chapter 30 - Part X - Money Growth and Inflation - Questions for Review - Page 655: 7
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