Who is most benefited from Inflation?
(A) Creditor
(B) Business Man
(C) Debtor
(D) None of these
Question Asked : SSC Junior Engineer (Civil) Exam 2018
Explanation : Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. Inflation is good for borrowers and bad for lenders because it reduces the value of the money paid back to the lenders. Debtors find them selves paying a lower real interest rate than expected, and stocks tend to rise in value to reflect the inflation level.
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Tags : macroeconomics