5. Explain whether the following statements are true, false or uncertain. a. Inflation hurts borrowers and helps

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5. Explain whether the following statements are true, false or uncertain.

a. ‘Inflation hurts borrowers and helps lenders, because borrowers must pay a higher rate of interest.’

b. ‘If prices change in a way that leaves the overall price level unchanged, then no one is made better or worse off.’

c. ‘Inflation does not reduce the purchasing power of most workers.’

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Business Economics

ISBN: 388402

2nd Edition

Authors: Mark P. Taylor, Andrew Ashwin, N. Gregory Mankiw

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