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 a sudden increase in inflation because their interest rates remain fixed and do not change with inflation. As inflation rises, the real value of the loan decreases, making it easier to pay off.

Which of the Following Groups Is Protected from a Sudden