A high inflation rate will
A)harm those who have saved while helping those who have borrowed.
B)harm those who have borrowed while helping those who have saved.
C)harm those who have saved and those who have borrowed.
D)benefit those who have saved and those who have borrowed.

Question

Quizplus · Accepted Answer

A high inflation rate reduces the value of money, which means that debts become easier to pay off with less valuable currency. This helps those who have borrowed money but harms those who have saved their money, as the value of their savings decreases.

A High Inflation Rate Will