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

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Definitions:

Proportion Of Successes

A statistical measure that calculates the ratio of successes in a set of observations to the total number of observations.

Z Test

Utilized to check for differences in the means of two populations, this statistical test requires that variances are known and that there is a considerable sample size.

Group 1

Typically refers to the first group or category in a study or classification system.

Sample Survey

A method used to gather information and data from a subset of a population to make inferences about the whole population without examining every individual.