Question

If inflation falls,

a. people choose to put in less effort to keep money balances low. when inflation is unexpectedly low it redistributes wealth from borrowers to lenders.
b. people choose to put in more effort to keep money balances low. when inflation is unexpectedly low it redistributes wealth from borrowers to lenders.
c. people choose to put in more effort to keep mon

Answer 1

Answer: A

Explanation: when inflation falls people choose to put in less effort to keep money balances low. When inflation is unexpectedly low, it redistributes wealth from borrowers to lenders.

People do not put in an effort to keep money when the inflation rate is unexpectedly low because the money loses its value. Lenders gain because, when they will get their money back, it will be of more value than what it was while lending.

Answer 2

The answer would be:

If inflation falls, a.)people choose to put in less effort to keep money balances low. when inflation is unexpectedly low it redistributes wealth from borrowers to lenders.

Hope this helps.