If inflation is higher than anticipated and benefits are not indexed,which group loses purchasing power?
A) Borrowers and lenders
B) Lenders and retirees
C) Borrowers and retirees
D) Only borrowers
E) Only lenders

Question

Quizplus · Accepted Answer

Lenders lose because they receive payments in money that is worth less than expected. Retirees lose purchasing power if their benefits are not indexed to inflation, as their fixed income buys less.

If Inflation Is Higher Than Anticipated and Benefits Are Not