Which of the following groups would not tend to lose from an unexpected inflation?
A)Retirees on fixed pensions
B)Creditors who had lent money before inflation and are being repaid after inflation
C)People whose incomes are tied to long-term contracts
D)Debtors who had borrowed before inflation and are repaying the loan after inflation
E)Firms which had agreed to sell a particular product for a fixed price for a given number of years

Question

Quizplus · Accepted Answer

Debtors who had borrowed before inflation and are repaying the loan after inflation would benefit from unexpected inflation as the value of the money they borrowed is worth less than when they pay it back.

Which of the Following Groups Would Not Tend to Lose