Of the Following, Who Would Most Likely Be Hurt by an Unanticipated

question 25

Multiple Choice

Of the following, who would most likely be hurt by an unanticipated increase in the rate of inflation?

• A) an individual with a 30-year fixed-rate home mortgage loan
• B) the U.S. federal government because it has a large quantity of outstanding debt
• C) lenders who have made long-term loans at fixed interest rates
• D) Social Security recipients whose benefits are adjusted upward as the general level of prices increases

---

Definitions:

Overextraction

The process of extracting natural resources faster than they can be replenished, leading to depletion or degradation of those resources.

User Cost

The cost of using a durable good or capital, considering factors like depreciation and the opportunity cost of not investing the funds elsewhere.

Extraction Cost

The expenses associated with removing natural resources from the earth or sea, including labor, equipment, and regulatory compliance costs.

Property Rights

The legal rights to use, control, and benefit from resources, assets, or property.