Inflation hedges ________.
A) have real returns that are less affected by inflation
B) increase the risk and return from holding currency
C) exhibit zero return
D) are denominated in nominal terms

Question

Quizplus · Accepted Answer

Inflation hedges are investments that have real returns that are less affected by inflation. These types of investments provide a safeguard against the erosion of purchasing power caused by inflation. Options for inflation hedges include real estate, commodities, inflation-indexed bonds, and stocks of companies that can increase prices to keep up with inflation.

Inflation Hedges ________