Generally, you would expect inflation to hurt:
A) home buyers and help sellers of homes.
B) lenders with interest rates below the inflation rate.
C) people on fixed incomes more than people whose incomes increase over time.
D) all of the above.

Question

Quizplus · Accepted Answer

All the options provided are correct in the context of inflation. Inflation generally hurts home buyers because it increases the prices of homes, making it more expensive for them to purchase homes, while sellers benefit from selling at higher prices. Lenders with interest rates below the inflation rate lose purchasing power over time, making it a disadvantageous situation for them. People on fixed incomes suffer more than those whose incomes increase over time because their purchasing power diminishes as prices increase, while those with increasing incomes may be able to keep pace with or outpace inflation.

Generally, You Would Expect Inflation to Hurt