Tina Eckstrom and her husband bought a deferred annuity that started paying them $700 a month in retirement benefits. They, along with millions of other people who live on fixed incomes, are examples of:
A)those who are responsible for inflation.
B)the big winners from inflation.
C)the big losers from inflation.
D)the paradox of thrift.
E)stock market losers.

Question

Quizplus · Accepted Answer

People on fixed incomes, like those receiving a fixed annuity, are negatively impacted by inflation because their purchasing power decreases as prices rise.

Tina Eckstrom and Her Husband Bought a Deferred Annuity That