Who is most likely to benefit from inflation?
A)retired people
B)lenders
C)borrowers
D)low-income consumers
E)government

Question

Quizplus · Accepted Answer

Inflation erodes the purchasing power of money, making debt less valuable. Borrowers benefit from inflation as they pay back debt with less valuable money than they borrowed. This means that they are effectively paying back less than what they owed originally.

Who Is Most Likely to Benefit from Inflation