If the inflation rate is higher than expected,which of the following groups in society would be most likely to gain?
A)borrowers
B)lenders
C)persons holding large amounts of money
D)persons on fixed incomes
E)workers under contract without a cost of living adjustment

Question

Quizplus · Accepted Answer

If the inflation rate is higher than expected, the purchasing power of money decreases, which means that the amount of money to be repaid will be less valuable than the amount borrowed initially. Thus, the borrowers will be most likely to gain.

If the Inflation Rate Is Higher Than Expected,which of the Following