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18 December, 19:29

When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors. / true or false

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  1. 18 December, 23:18
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    Answer: True. When inflation was expected to be high and it turns out to be low, wealth is redistributed from debtors to creditors.

    Explanation: If inflation is high, money is not moving as it normally would in a low inflation time. When inflation is low, money is moving more freely (people are spending) to the debtors and the creditors. Inflation refers to the increase in prices and fall in the purchasing value of money.
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