Asked by
Aaron Hardie
on Oct 13, 2024
Verified
If you were a creditor you would prefer
A) deflation.
B) disinflation.
C) unanticipated inflation.
D) anticipated inflation.
Unanticipated Inflation
Inflation that occurs when people do not expect it, leading to negative impacts on savings and purchasing power.
Disinflation
A slowdown in the rate of increase of the general price level of goods and services over time.
- Acquire knowledge on the concepts of inflation, disinflation, and deflation, along with their causative factors and outcomes.
- Explain the linkage between inflation rates and the cost of borrowing, focusing on inflationary periods.
Verified Answer
AR
Learning Objectives
- Acquire knowledge on the concepts of inflation, disinflation, and deflation, along with their causative factors and outcomes.
- Explain the linkage between inflation rates and the cost of borrowing, focusing on inflationary periods.