Which of these groups would most likely gain from unanticipated inflation? A) individuals who work for minimum wage B) retirees who are getting a fixed income pension C) farmers who have borrowed money at fixed interest rates D) banks who have loaned their excess reserves at fixed interest rates

Respuesta :

Answer: C) farmers who have borrowed money at fixed interest rates

Explanation:

Inflation is a situation in an economy when there's increase in the prices of products or services.

An individuals who work for minimum wage because he or she is on a minimum wage and the inflation will mean that the person will have lesser goods to spend the money on.

Retirees who are getting a fixed income pension are also at a disadvantage because the money is fixed and doesn't take into consideration the increase in prices of goods.

Farmers who have borrowed money at fixed interest rates will be of advantage as they've already borrowed the money when there was no inflation. Assuming they're borrowing now, they will have to pay a higher interest.

Banks who have loaned their excess reserves at fixed interest rates are also at a disadvantage.