18. Gina loans George $1,000. George agrees to pay her $1, 100 next year. They both expect an inflation rate of 4 percent. At the end of the year, the inflation rate turns out to be 5 percent. This unexpected change is A) good for George but bad for Gina. B) good for both George and Gina. C) bad for both Gina and George. D) good for Gina but bad for George. E) irrelevant, a deal is a deal. 19. The velocity of money is 5, real GDP is 100 and the money supply is 100. According to the quantity theory of money, a 20 percent increase in the money supply causes a A) 10 percent decrease in average prices. B) 10 percent increase in average prices. C) 5 percent decrease in real GDP. D) 20 percent decrease in velocity. E) 20 percent increase in average prices. 20 Th