If you borrow money at what you believe is an appropriate interest rate for the level of expected inflation, but the actual inflation rate turns out to be much higher than you had expected:

Question

Accepted Answer

you will be paying the loan back with dollars that have much less purchasing power than you had expected

Answer

you will be paying the loan back with dollars that have much higher purchasing power than you had expected

Answer

you, the borrower, will gain from an intended redistribution of wealth

Answer

you will be paying the loan back with dollars that have the same purchasing power as the dollars you borrowed

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If you borrow money at what you believe is an appropriate interest rate for the ...

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