Which of the following groups is protected from a sudden increase in inflation?
A)Borrowers who have loans at fixed interest rates.
B)Fixed-income groups.
C)Workers who receive fixed wages under multiyear contracts.
D)People who rent their homes under short-term leases in comparison with those who own their homes.

Question

Quizplus · Accepted Answer

Borrowers who have loans at fixed interest rates are protected from sudden increases in inflation because their interest payments remain the same, even if inflation rates rise.

Which of the Following Groups Is Protected from a Sudden