Which of the Following Individuals Is Not Hurt by Inflation

question 78

Multiple Choice

Which of the following individuals is not hurt by inflation?

• A)Akshay, who borrowed $1,000 from a friend and agreed to pay the same amount one year later, but during the year, prices increased by 10 percent.
• B)Vjiay, who lent his friend $1,000 and agreed to accept repayment of the same amount one year later, but during the year, prices increased by 10 percent.
• C)Randall, who lives on a fixed income of $800 per month.
• D)Asuza, who keeps her savings in the form of cash in a safe at home.

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Definitions:

Scientific Approach

A methodical way of investigating phenomena, acquiring new knowledge, or correcting and integrating previous knowledge based on empirical evidence and observation.

Ruling Out

In research, this refers to the process of eliminating alternative explanations for observed effects, strengthening the causal inference.

Intuition

The ability to understand or know something immediately based on feelings rather than facts or evidence.

Authority

The power or right to give orders, make decisions, and enforce obedience, often within a specific context or institution.