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CaHeK987 [17]
3 years ago
11

What groups are hurt by inflation?

Business
1 answer:
mrs_skeptik [129]3 years ago
5 0

Answer:

Groups hurt by inflation: Fixed Salary Earners and Pensioners, Creditors and Savers.

Explanation:

Inflation refers to a quantitative measure of a rate at which a basket of selected goods and services’ average price level in an economy up rises over some time period. Inflation is indicative of a rise in general price level wherein a single currency unit buys less than what it did formerly. Expressed in percentage, inflation is indicative of a decline in the national currency’s purchasing power.  

<u>GROUPS HURT BY INFLATION </u>

<u>Fixed Salary Earners</u>: Their real income is eroded by inflation.

<u>Creditors</u>: When loan is repaid, its purchasing power is reduced.

<u>Savers</u>: This group is most hurt since the official nominal interest of the bank cannot resist the real rate of interest (inflation rate).  

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Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

<h3>What is the return on investment?</h3>
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Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

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To coerce means to persuade an unwilling person to do something by threats or force.

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