Which of the following individuals would be most negatively affected by anticipated inflation?
A)a retired railroad engineer who receives a fixed income payment every month
B)a union contractor whose pay is adjusted based on changes in the CPI
C)a full-time employee at a pizza parlor who makes more than the minimum wage
D)a student who borrows $10,000 at a nominal interest rate of 5% to finance educational expenses

Question

Quizplus · Accepted Answer

A retired railroad engineer who receives a fixed income payment every month will be most negatively affected by anticipated inflation because the purchasing power of their fixed income will decrease as prices rise. They will not be able to afford as much with their fixed income, causing financial strain.

Which of the Following Individuals Would Be Most Negatively Affected