Which group tends to be most hurt by unexpected inflation?
A)banks
B)individuals with unindexed pensions
C)employers
D)fixed-income earners
E)Both B and D are correct.

Question

Quizplus · Accepted Answer

Both individuals with unindexed pensions and fixed-income earners are negatively impacted by unexpected inflation. Individuals with unindexed pensions receive a fixed income that does not adjust for inflation, so their purchasing power decreases as prices rise. Similarly, fixed-income earners such as retirees or people living off of interest from bonds or other fixed-income investments will see the value of their income decrease as inflation rises.

Which Group Tends to Be Most Hurt by Unexpected Inflation