In the context of unanticipated inflation, borrowers benefit because they repay loans with money that has _____ purchasing power, while savers suffer losses as the real value of their returns decreases.

In the context of unanticipated inflation, borrowers benefit because they repay loans with money that has less purchasing power than when they borrowed it. This means that the money they use to pay back their loans can buy fewer goods and services than it could before inflation increased. For example, if someone borrowed $1,000 when prices were lower and then repaid that amount after inflation has risen, the money they return is worth less in terms of what it can buy. On the other hand, savers suffer because the money they saved loses value; if they had $1,000 saved and the inflation rate was high, that money won't buy as much as it could before. This creates a situation where borrowers gain while savers lose due to the changes in money's purchasing power caused by inflation.