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:

Schemas

Mental models or cognitive frameworks that assist people in categorizing and understanding information through the lens of previous knowledge and experiences.

Freud

Austrian neurologist Sigmund Freud created psychoanalysis, a therapeutic method aimed at treating psychological disorders through dialogue between a patient and their psychoanalyst.

Hostile Comments

Communication or remarks that are aggressive, insulting, or intended to harm or belittle someone.

Sigmund Freud

A reiteration of Freud, known for his development of the foundational theories and techniques of psychoanalysis, including the concepts of the unconscious mind, defense mechanisms, and the structure of personality.