Multiple Choice Questions: 1. Who would be hurt by unanticipated inflation? A} those living on incomes with cost-of-living adjustments B) those who find prices rising less rapidly than their nominal incomes C} those who lent money at a fixed interest rate D) those who became debtors when prices were lower If the average level of nominal income in a nation is $21,000 and the price level index is 154, the average real income would be about $12,546 $13,635 $15,299 $17,323 With no inflation, a bank would be willing to lend a business firm $10 million at an annual interest rate of 8%. But if the rate of inflation was anticipated to be 5%, the bank would charge the firm an annual interest rate of 2% 5% 8% 14% If the Consumer Price Index was 110 in one year and 117 in the next year, then the rate of inflation from one year to the next was 3.5% 4.7% 5.4% 7.1%