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प्रश्न
State the effect of inflation on creditors.
संक्षेप में उत्तर
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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.
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Effects of Inflation
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संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
Explain how taxes can bring about equality in income distribution.
Examine any three adverse or evil effects of inflation on production.
______ are worst affected during the period of inflation.
Observe the relationship of the first pair of words and complete the second pair.
During inflation the debtors gain.
During inflation the ______ lose.
Purchasing power of money falls when ______.
State running inflation impact on fixed income groups.
How does inflation affect the following?
Debtors and creditors
Which section of the society is worst affected during inflation? Why?
Explain the impact of inflation on producers in the short run.
