Question

Inflation that is sudden or unexpected tends to hurt which of these groups of people MOST?
A) people who have a steady job
B) people who have borrowed money
C) people who have loaned money to others
D) people who have investments in the stock market

Answer 1

The correct answer is A. Unexpected or unanticipated inflation - inflation that has not been planned for - affects lenders, since the money they get back is not as worthy as it used to be, but it affects people with a steady job the most, because they will receive lower actual wages and their purchasing power will decrease.