If prices rise, then persons living on fixed incomes will
A)see their real incomes falling.
B)see the purchasing power of their savings fall.
C)need to spend more to maintain their standard of living.
D)All of the above are true.

Question

Quizplus · Accepted Answer

If prices rise, the cost of goods and services will also increase, which means fixed income earners will see their real income declining. They will need to spend more to maintain their standard of living while their purchasing power is reduced due to the increasing cost of goods and services. Additionally, inflation can also cause the value of their savings to decline, so all the options are true.

If Prices Rise, Then Persons Living on Fixed Incomes Will