JAMB Economics 1981 Question 47

Question 47

Money and Inflation

Inflation is likely to benefit

  1. A.persons with bank savings
  2. B.persons employed in financial houses
  3. C.debtors
  4. D.persons who live on fixed pension funds
  5. E.creditors.
Show the answer and explanation

Answer: C (debtors)

Explanation

Debtors repay loans with money that has lost value, so inflation helps them.