A rising inflation rate tends to help the following types of people:
A)retirees and students with savings accounts.
B)borrowers and homeowners without mortgages.
C)homeowners with mortgages and students with loans.
D)landowners and borrowers.

Question

Quizplus · Accepted Answer

Homeowners with mortgages and students with loans benefit from rising inflation rates because the value of their debt decreases as the value of money decreases. This means they will have to pay back less money in real terms, which is essentially a form of debt relief.

A Rising Inflation Rate Tends to Help the Following Types