Which statement about inflation is correct?
A)Families are always hurt by inflation.
B)Inflation "subsidizes" those who receive relatively fixed money income.
C)The redistributive effects of inflation are arbitrary with respect to people and groups in society.
D)Inflation will decrease the real value of property assets and increase the real value of fixed-value assets.

Question

Quizplus · Accepted Answer

Inflation's redistributive effects are arbitrary because it can benefit some groups (like borrowers) and harm others (like savers), depending on their economic situation and how their incomes and assets are affected by rising prices.

Which Statement About Inflation Is Correct