PRC-3 · Chapter 18 · Question 30 of 33
During an unexpected bout of very high inflation, which specific group in society is most severely financially harmed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Pensioners surviving entirely on fixed nominal incomes
Explanation
High inflation rapidly erodes purchasing power. People on fixed nominal incomes suffer heavily because their income does not rise to match the surging cost of living.
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