Helped or Hurt from Inflation
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by Stephanie Foy
| 5 Questions
Note from the author:
GSE SSEMA1.d
1
1
How is the person in the scenario affected by unanticipated, moderate inflation?

A farmer buys machinery with a fixed-rate loan to be repaid over a ten-year period.
Helped
Hurt
2
1
How is the person in the scenario affected by unanticipated, moderate inflation?

A bank made many loans with low, fixed-interest rates.
Helped
Hurt
3
1
How is the person in the scenario affected by unanticipated, moderate inflation?

A widow lives entirely on an income from fixed-rate corporate bonds.
Helped
Hurt
4
1
How is the person in the scenario affected by unanticipated, moderate inflation?

A firm signs a contract to provide maintenance serivces at a fixed rate for the next five years.
Helped
Hurt
C
D
5
1
Which of the following will be helped by inflation?
A lender who made many loans at fixed interest rates.
A person living on a fixed income.
A store owner who cannot raise their prices due to competition.
A person who borrowed money at low fixed interest rates.
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