Unanticipated inflation arbitrarily:
A) "Subsidizes" those who receive fixed money incomes
B) "Taxes" those who receive fixed money incomes
C) "Penalizes" those who borrow money
D) "Benefits" those who save money

Question

Quizplus · Accepted Answer

Unanticipated inflation taxes those who receive fixed money incomes because their purchasing power decreases without warning. For example, retirees who rely on fixed pension payments or individuals on a fixed salary will find that their income will not stretch as far as it did before the inflation occurred.

Unanticipated Inflation Arbitrarily