Social Studies

a person in a favorable economic situation during inflation is? a. a borrower B. a retired person C. an investor

(1) Answers

Well, inflation drops the value of the currency. The borrower would give less real value back, so he is in advantage. The retired person gets the same amount of money, which is less value, while the investor also has something like that. To compensate for the advantage of the borrower, the banks would ask for some extra money for "profit".

Add answer