In Zimbabwe, inflation rose from an annual rate of 32 percent in 1998 to 100,000 percent in early 2009. Considering only the effects of this unexpected inflation, which of the following groups are helped by the inflation:
A)Debtors
B)People living on fixed pensions
C)Unemployed people
D)No one; inflation hurts everyone

Question

Quizplus · Accepted Answer

Debtors benefit from unexpected inflation because the real value of the money they owe is reduced, making it easier for them to pay back their debts with money that is worth less.

In Zimbabwe, Inflation Rose from an Annual Rate of 32