A high current rate of inflation ________ those who have saved and ________ those who have borrowed.
A)harms,helps
B)harms,has no effect on
C)helps,helps
D)helps,has no effect on
E)helps,harms

Question

Quizplus · Accepted Answer

High inflation harms those who have saved because the value of their savings decreases in real terms. On the other hand, inflation helps those who have borrowed because they are repaying their loans with currency that is worth less than the currency they borrowed.

A High Current Rate of Inflation ________ Those Who Have