Retirees and creditors:
A) benefit from inflation because they are paid in cheaper dollars.
B) benefit from inflation because interest rates rise.
C) are hurt by inflation because their purchasing power drops.
D) are hurt by inflation because taxes fall.

Question

Quizplus · Accepted Answer

Retirees and creditors are hurt by inflation because the purchasing power of their savings and fixed income decreases. As prices rise, they are able to buy fewer goods and services with the same amount of money, reducing their standard of living.

Retirees and Creditors