Which statement is true?

Question

Quizplus · Accepted Answer

During times of inflation, the nominal interest rate might be higher, but the real interest rate might be lower or even negative when adjusted for inflation. This can hurt savers and lenders who receive fixed nominal interest rates. Option A and C are incorrect as both suggest that only a certain group of people (the poor or those on fixed incomes) are affected by inflation, which is not true. Option D is incorrect as there is at least one true statement.

Which Statement Is True