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Question
Macroeconomics
Posted 3 months ago
Which of the following agents would benefit from unanticipated inflation?
Choose 1 answer:
(A) Olenna, who has stashed away money in a cave
(B) Bran, whose nominal income is the same every month
(c) The soldiers of Westeros, who are paid wages based on the salary negotiated last year
(D) Ygritte, who loaned Robb money last year at 3%3 \%
(E) Grey Worm, who has $3,000\$ 3,000 in student loan debt that has a fixed interest rate of 3.5%3.5 \%
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Answer from Sia
Posted 3 months ago
E
Key Concept
Real Interest Rate and Inflation
Explanation
Unanticipated inflation benefits debtors as it reduces the real value of the money they owe. Grey Worm, with a fixed interest rate loan, repays with money that is worth less than when he borrowed it.

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