Everything else constant,who is least likely to lose from unexpected inflation?
A) A retired person whose pension payments are fixed in dollars
B) A person with a large amount of money deposited in a savings account
C) A bank scheduled to receive fixed nominal mortgage payments
D) A homeowner scheduled to make fixed nominal mortgage payments
E) A consumer who spends extra time shopping for the lowest prices

Question

Quizplus · Accepted Answer

A homeowner with fixed nominal mortgage payments benefits from unexpected inflation because the real value of their payments decreases, making it easier to pay off the mortgage.

Everything Else Constant,who Is Least Likely to Lose from Unexpected