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प्रश्न
Identity the correct statement from the following:
पर्याय
Debtors gain during inflation
Creditors lose during inflation
Both Debtors gain during inflation and Creditors lose during inflation.
Neither Debtors gain during inflation and Creditors lose during inflation.
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उत्तर
Both Debtors gain during inflation and Creditors lose during inflation.
Explanation:
- Debtors gain during inflation: This is correct because inflation decreases the real value of money over time. Debtors repay their loans with money that is worth less than when they initially borrowed it.
- Creditors lose during inflation: This is also correct because the money they receive back from debtors has less purchasing power than the money they originally lent.
संबंधित प्रश्न
Answer the following :
What are the Non - economic effects of inflation?
The debt which yields income to the government is called as ______.
Examine any three adverse or evil effects of inflation on production.
Purchasing power of money falls when ______.
Which of the following section of the society is most adversely affected by inflation?
Mention the effect of inflation on the value of money.
State the effect of inflation on creditors.
Why do producers gain in the short run during inflation?
How does inflation affect the distribution of income?
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.
