Who is likely to lose the least from an unanticipated inflation?

Question

Quizplus · Accepted Answer

Beth who works for a firm that gives its employees an annual cost of living adjustment is likely to lose the least from an unanticipated inflation as the cost of living adjustment will keep pace with inflation and her wages will increase accordingly. Chris who loaned at a fixed rate of interest will likely receive a lower effective interest rate because of inflation, Janice's wage determined by a contract without a cost of living adjustment will decrease in real terms due to inflation and Steve who has put his financial assets into a savings account paying a fixed rate of interest will receive a lower real rate of return due to inflation.

Who Is Likely to Lose the Least from an Unanticipated