. 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.' [5 marks]

b. 'If prices change in a way that leaves the overall price level unchanged, then no one is made better or worse off.' [5 marks]

c. 'Inflation does not reduce the purchasing power of most workers.' [5 marks]

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