Which of the following describes a situation in which the person is hurt by inflation?
A)a retiree whose pension is adjusted for inflation
B)a person who borrows money during a period when inflation is underpredicted
C)a person who lends money during a period when inflation is overpredicted
D)a person paid a fixed income during an inflationary period
E)a worker who gets regular cost of living adjustments

Question

Quizplus · Accepted Answer

When a person is paid a fixed income during an inflationary period, the value of their income decreases as prices increase. This means they can buy fewer goods and services with the same amount of money, ultimately reducing their purchasing power.

Which of the Following Describes a Situation in Which the Person