PRC-3 · Chapter 18 · Question 18 of 33
Which of the following groups of people is most severely and directly harmed by a period of unexpectedly high inflation?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Pensioners surviving entirely on fixed nominal incomes
Explanation
High inflation rapidly erodes purchasing power. Those on fixed incomes (like pensions) suffer greatly because their nominal income does not rise to match the higher cost of living.
More Inflation and Unemployment MCQs
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