Which of the following do not suffer the costs of inflation?

Question

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People whose incomes rise more rapidly than inflation do not suffer the costs of inflation because their purchasing power increases. On the other hand, people on fixed incomes (A) suffer because the value of their income decreases with inflation. Firms that have to devote more time and labor to raising prices (C) suffer from increased costs and reduced profitability. An investor that has to pay higher taxes because of inflation (D) suffers from reduced after-tax returns on investments.

Which of the Following Do Not Suffer the Costs of Inflation