Which of the following do not suffer the costs of inflation?
A)persons on fixed incomes
B)persons whose incomes rise more rapidly than inflation
C)firms that have to devote more time and labour to raising prices
D)investors who have to pay higher taxes because of the inflation
E)lenders who did not forecast inflation accurately

Question

Quizplus · Accepted Answer

Persons whose incomes rise more rapidly than inflation will not suffer the costs of inflation because their purchasing power will increase.

Which of the Following Do Not Suffer the Costs of Inflation