Who, of the following options, does not suffer the costs of inflation?
A)people on fixed incomes
B)people whose incomes rise more rapidly than inflation
C)firms that have to devote more time and labour to raising prices
D)an investor that has to pay higher taxes because of the inflation

Question

Quizplus · Accepted Answer

People whose incomes rise more rapidly than inflation do not suffer the costs of inflation as their purchasing power actually increases. Inflation affects people on fixed incomes, firms that have to devote more time and labor to raising prices, and investors who have to pay higher taxes due to inflation reducing the value of their investments.

Who, of the Following Options, Does Not Suffer the Costs