If Inflation Is Much Higher Than Originally Anticipated,_____ Are Better

question 135

Multiple Choice

If inflation is much higher than originally anticipated,_____ are better off and _____ are worse off.

• A)lenders who extended loans at fixed interest rates;people who borrowed at fixed interest rates
• B)people who borrowed at fixed interest rates;banks that extended loans at fixed interest rates
• C)retired people living on a fixed income;people who had borrowed fixed interest rate loans
• D)people who deposited their savings at fixed interest rates;banks that accepted deposits at fixed interest rates
• E)oil refiners who signed labor contracts agreeing to pay their workers the cost-of-living wage;workers who receive that cost-of-living wage

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Definitions:

Partial Payment

Partial payment is a payment that is made towards a debt or invoice that is less than the full amount due at the time of payment.

On Credit

Purchasing goods or services with the agreement to pay for them at a later date.

Assets

Resources owned by a business or individual that have economic value and can be converted into cash.