If the Inflation Rate Is Higher Than Expected,which of the Following

question 175

Multiple Choice

If the inflation rate is higher than expected,which of the following groups in society would be most likely to gain?

• A)borrowers
• B)lenders
• C)persons holding large amounts of money
• D)persons on fixed incomes
• E)workers under contract without a cost of living adjustment

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Definitions:

Liability

A financial obligation or debt that a company owes to others, which must be settled over time through the transfer of assets or services.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.

Expense

Money spent or cost incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Trial Balance

An accounting report that lists the balances of all general ledger accounts at a particular point in time to check the accuracy of bookkeeping entries.