Essentials of Economics 8th Edition by Bradley Schiller

Exercise 8

Which of the following people would we expect to be hurt by an increase in the rate of inflation from 3 percent tO₆ percent?
( a ) A homeowner with a $50,000 fixed-rate mortgage on his home.
( b ) A retired person who receives a monthly pension of $600 from her former employer.
( c ) An automobile worker with a cost-of-living provision in his employment contract.
( d ) A wealthy individual who owns coporate bonds that pay her an interest rate of 7 percent per year.