Unanticipated inflation penalizes:

A) those who are saving.
B) those who are borrowing.
C) governments.
D) those who are in high-growth industries where wages are growing faster than prices.
E) those who can't find jobs at any wage rate.

Unanticipated Inflation

Inflation that occurs when the general level of prices rises at a rate that was not forecasted or expected by consumers, businesses, or economists.

Saving

The portion of income not spent on current consumption but rather set aside for future use.

Borrowing

The act of obtaining funds from another party with the promise to repay the principal amount along with interest or other charges.