Advertisements
Advertisements
Questions
State running inflation impact on fixed income groups.
Explain the effects of inflation on the following:
Fixed income groups
Explain the impact of inflation on the fixed income group of people.
Advertisements
Solution
- Fixed-income earners (i.e., wage and salary earners, pensioners, etc.) suffer during inflation. It is because that their incomes do not increase in the same proportion in which prices or the cost of living rises.
- As a result, these fixed income earners tend to buy less amount of goods and services than before even when there is little rise in their income.
APPEARS IN
RELATED QUESTIONS
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:
______ 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 ______.
How does inflation affect the following?
Debtors and creditors
How does inflation affect the following?
Farmers
Which section of society gains due to inflation? Why?
Explain the impact of inflation on producers in the short run.
