Inflation redistributes income
A)from workers to firms.
B)from lenders to borrowers.
C)from the poor to the rich.
D)All of the above may be correct.

Question

Quizplus · Accepted Answer

Inflation can redistribute income in various ways: from workers to firms as prices for goods increase faster than wages, from lenders to borrowers as the real value of borrowed money decreases, and potentially from the poor to the rich depending on the structure of assets and debts in an economy.

Inflation Redistributes Income