Which group benefits from an unanticipated rise in the inflation rate?
A) homeowners with fixed-rate mortgages
B) senior citizens living on a fixed income
C) creditors or lenders
D) workers on contracts without escalator clauses

Question

Quizplus · Accepted Answer

Homeowners with fixed-rate mortgages benefit from an unanticipated rise in inflation because the real value of their mortgage payments decreases, making it cheaper for them to pay back their loans in terms of purchasing power.

Which Group Benefits from an Unanticipated Rise in the Inflation