Generally speaking,which of the following groups would tend to gain real income from the wealth effects of inflation?
A)People with fixed income.
B)People who have savings accounts at fixed rates of interest.
C)People who own assets that are appreciating faster than the inflation rate.
D)People who hold all of their assets in the form of cash.

Question

Quizplus · Accepted Answer

The wealthiest group of people who own assets that are appreciating faster than the inflation rate tends to gain real income from the wealth effects of inflation. They can enjoy increased value and gains from their holdings without much additional effort.

Generally Speaking,which of the Following Groups Would Tend to Gain