Sign In
Ask Question
History
Preston Warren
8 January, 05:32
Inflation is most harmful to
+2
Answers (
1
)
Santana
8 January, 06:05
0
Inflation is most harmful to the consumers. It can be beneficial for lenders or borrowers depending upon on the situation.
Explanation:
Inflation is harmful to consumers as the purchasing power of their income gets reduced. Those people who do not have their income indexed to inflation are harmed the most.
If the wages increase with inflation the borrowers will be benefited the most. They will need to pay the same amount of money but their nominal income will be higher.
When the wages do not increase with inflation, the creditors are benefited. This is because increased prices, in this case, will increase the demand for credit. The interest rate, as a result, will rise. This will benefit the creditors.
Comment
Complaint
Link
Know the Answer?
Answer
Not Sure About the Answer?
Get an answer to your question ✅
“Inflation is most harmful to ...”
in 📙 History if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Was the Boston massacre a massacre? WHY DO we call it that
Answers (2)
Improved the lives of the Russian serfs
Answers (1)
Why did the British intervene in Haiti?
Answers (2)
Why was the victory of the Franks at the battle of Tours in 732 important A. Charlemagne's forces decisively defeated the Lombard armies in Italy B. It stopped Muslim armies from advancing farther into Western Europe C.
Answers (2)
During this kingdom, pharaohs kept peace and traded with Nubia.
Answers (1)
New Questions in History
After Jesus' ascension, the disciples gathered together to wait as Jesus had commanded. a. True b. False
Answers (1)
Why did operation rolling thunder fail to lead to a quick victory?
Answers (1)
Body of water near home land of the Ostrogoths
Answers (1)
Which is a cultural characteristic common to most native Americans?
Answers (1)
Why is it important to respond to a counterclaim in a respectful way?
Answers (2)
Home
»
History
» Inflation is most harmful to
Sign In
Sign Up
Forgot Password?