Which of the Following Groups Would Benefit Most in Real

question 99

Multiple Choice

Which of the following groups would benefit most in real terms from a period of high and unanticipated inflation,as was experienced in Canada in the early 1970s?

• A)mortgage companies and banks who issued fixed-rate mortgages to clients
• B)banks with outstanding loans to their customers
• C)seniors whose income is largely interest earnings on past savings
• D)firms that maintain large cash balances for the operation of their business
• E)homeowners who had long-term fixed-rate mortgages