Advertisements
Advertisements
प्रश्न
State the effect of inflation on creditors.
संक्षेप में उत्तर
Advertisements
उत्तर
- Inflation has a negative effect on creditors. When inflation develops, the money creditors receive back from borrowers has less purchasing power than when it was first lent.
- This means that the actual worth of money declines over time, and creditors essentially lose a portion of the value of their loans as a result of rising prices, because the money repaid to them buys less goods and services than it would have before inflation.
shaalaa.com
Effects of Inflation
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
APPEARS IN
संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
Answer the following question in one or two sentences.
Explain the term deficit Financing.
Examine any three adverse or evil effects of inflation on production.
Identity the correct statement from the following:
Which of the following section of the society is most adversely affected by inflation?
Why do producers gain in the short run during inflation?
Discuss the effects of inflation on production.
How does inflation affect the following?
Debtors and creditors
Which section of society gains due to inflation? Why?
Explain the impact of inflation on producers in the short run.
