________ would be hurt by unexpected inflation.
A) Someone who lent money out at a fixed interest rate
B) A firm that hired a worker on a two-year wage contract
C) Someone who borrowed money at a fixed interest rate
D) A worker whose wage increases with inflation
E) A firm that purchased inputs with a two-year contract

Question

Quizplus · Accepted Answer

Unexpected inflation erodes the real value of money. A lender who lent money at a fixed interest rate would receive payments that are worth less in real terms, thus being hurt by unexpected inflation.

________ Would Be Hurt by Unexpected Inflation