Question

Which of the following people is likely to benefit from inflation? A. A person with low income B. A person who has a large savings account C. A person who owes $200,000 on a loan D. A retired person on a fixed income

Answer 1

Answer:

B. A person who has a large savings account.  

It can have a benefit if the interest rate is higher than inflation

C. A person who owes $200,000 on a loan

inflation lets debtors pay lenders back with money that is worth less than it was when they originally borrowed it.

Explanation: A.

A. A person with low income . dont have benefits from inflation

B. A person who has a large savings account.  

It can have a benefit if the interest rate is higher than inflation

C. A person who owes $200,000 on a loan

inflation lets debtors pay lenders back with money that is worth less than it was when they originally borrowed it.

D. A retired person on a fixed income dont have benefits from inflation