Macro 2.5-Unexpected Inflation-Who is Hurt, Who Benefits Practice 1

Last updated about 1 year ago

1 question

Sort the following...

Banks extend many fixed rate loans
A farmer buys a tractor with a fixed rate loan to be repaid over a 10 year period.
Your family buys a new home with an adjustable rate mortgage
You're saving your summer earnings in a savings account earning a fixed interest
A widow lives entirely on income from fixed rate corporate bonds
A retired man lives entirely on S.S.
A retired bank official lives entirely on income from stock dividends
A firm signs a contract to provide maintenaince services at a fixed rate for the next 5 years.
A state government receives revenue mainly from an income tax.
A local gov. recieves revenue mainly from fixed-rate license fees charged to businesses.
Your friend rents an apt. with a 3 year lease.