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.

Question

Quizplus · Accepted Answer

Those who live on fixed incomes, such as retirees receiving annuity payments, are typically big losers from inflation because as prices rise, their purchasing power decreases while their expenses increase.

Tina Eckstrom and Her Husband Bought a Deferred Annuity That