________ would be helped by unexpected inflation.
A) Someone who lent money out at a fixed interest rate
B) Someone who signed a two-year contract at a fixed wage
C) Someone who borrowed money at a fixed interest rate
D) A worker whose wage increases with expected inflation
E) Elderly individuals on a fixed income

Question

Quizplus · Accepted Answer

If someone borrowed money at a fixed interest rate and then unexpected inflation happens, they will be paying back the loan with less valuable dollars than they initially borrowed. This results in the borrower repaying less in real value than they initially borrowed.

________ Would Be Helped by Unexpected Inflation