Which of the following statements regarding the effects of unanticipated inflation on the labor market and the market for financial capital is most accurate ()
A. When the actual rate of inflation is higher than expected, employees receive less compensation for their labor and this represents a gain for employers at the expense of their employees.
B. When the actual rate of inflation is declining, real wage rates of employees are lower than employers expected to pay, and employers gain at the expense of their employees.
C. When there is unanticipated inflation, interest rates are not set high enough to compensate borrowers for the declining value of money so lenders gain at the expense of borrowers.