All of the following groups are harmed by unanticipated inflation except
A) Social Security beneficiaries who have COLAs
B) banks that provide fixed-rate mortgage loans to households
C) the public who invests in fixed-return securities of the U.S. government
D) savers who place their funds in commercial banks

Question

Quizplus · Accepted Answer

Social Security beneficiaries who have Cost-of-Living Adjustments (COLAs) are protected against unanticipated inflation because their benefits are adjusted to reflect changes in the cost of living, thereby maintaining their purchasing power.

All of the Following Groups Are Harmed by Unanticipated Inflation