Who is hurt and who benefits from inflation? Why?
Inflation hurts those on fixed incomes and those that save at fixed nominal rates of interest. Inflation benefits those who borrow at fixed nominal rates of interest and those whose wealth increases faster than the rate of inflation.
Economics
You might also like to view...
If borrowers and lenders expect a higher rate of inflation,
a. nominal interest rates should decrease. b. nominal interest rates should remain constant. c. nominal interest rates should increase. d. real interest rates should increase.
Economics
For which of the following goods is the income elasticity of demand likely lowest?
a. subscriptions to premium movie channels through the local cable television provider b. hi-definition DVD players c. champagne d. housing
Economics