Which of the following statements about inflation is/are correct?
(1) Inflation occurs when the government handouts a large sum of cash to every citizen in a certain year.
(2) Inflation redistributes wealth from lenders to debtors if it is anticipated.
(3) People prefer holding real assets to cash under expected inflation.
A. (1) only
B. (2) only
C. (3) only
D. (1), (2) and (3)