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By _____________ economists refer to an unanticipated inflation that reduces the real value of outstanding government debt.

Q: Answer-By _____________ economists refer to an unanticipated inflation that reduces the real value of outst...

If the inflation were anticipated, then the interest rate on government bonds would be higher to protect the bond holders from having to take a capital loss from the loss of real value of the bonds through the inflation.

A Inflation tax

B Cost of inflation

C Seigniorage

D Unanticipated default

E None of these

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By _____________ economists refer to an unanticipated inflation that reduces the real value of outstanding government debt.

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