PRC-3 · Chapter 18 · Question 3 of 33
During a period of high, unexpected inflation, which of the following groups of people is most likely to suffer financially?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Pensioners and individuals surviving on a fixed nominal income
Explanation
Inflation rapidly destroys the purchasing power of money. Those on fixed incomes (like pensioners) find their money buys fewer goods, severely hurting their living standards.
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