Study the following conditions. Which would most benefit from retired persons living on fixed incomes?
A)A period of high unemployment
B)A period of low unemployment
C)A period of high inflation
D)A period of low inflation

Question

Quizplus · Accepted Answer

A period of low inflation would most benefit from retired persons living on fixed incomes. The term fixed income is applied to a person's income that does not vary with each period. This can include income derived from fixed-income investments such as bonds and preferred stocks, or pensions that guarantee a fixed income. When pensioners or retirees are dependent on their pension as their dominant source of income, the term "fixed income" can also mean that they have relatively limited discretionary income or have little financial freedom to make large expenditures. During low inflation, people on fixed incomes are essentially losing money to the system.

Study the Following Conditions