Which Group Tends to Be Most Hurt by Unexpected Inflation

question 75

Multiple Choice

Which group tends to be most hurt by unexpected inflation?

• A)banks
• B)individuals with unindexed pensions
• C)employers
• D)fixed-income earners
• E)Both B and D are correct.

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Definitions:

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.

Substitute

A product or service that can be used in place of another to satisfy the same want or need.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at that price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price.