Helped or Hurt from Inflation

Last updated over 6 years ago
5 questions
Note from the author:
GSE SSEMA1.d
1

How is the person in the scenario affected by unanticipated, moderate inflation?

A farmer buys machinery with a fixed-rate loan to be repaid over a ten-year period.

1

How is the person in the scenario affected by unanticipated, moderate inflation?

A bank made many loans with low, fixed-interest rates.

1

How is the person in the scenario affected by unanticipated, moderate inflation?

A widow lives entirely on an income from fixed-rate corporate bonds.

1

How is the person in the scenario affected by unanticipated, moderate inflation?

A firm signs a contract to provide maintenance serivces at a fixed rate for the next five years.

1

Which of the following will be helped by inflation?