Inflation impacts debtors more than creditors.

Name: Inflation impacts debtors more than creditors.
Brand: Quizplus
Rating: 4.9 (34 reviews)

Question

Quizplus · Accepted Answer

Inflation generally benefits debtors because they can repay their loans with money that is worth less than when they originally borrowed it, reducing the real value of the debt. Creditors, on the other hand, are negatively impacted because the money they receive back has less purchasing power than when they lent it out.

Inflation Impacts Debtors More Than Creditors