Which of the following people would we expect to be hurt by an increase in the rate of inflation from 3
percent to 6 percent?
a.
A homeowner with a $50,000 fixed rate mortgage on his home.
b.
A retired person who receives a monthly pension of $500 from her former employer.
C.
An automobile worker with a cost-of-living provision in his employment contract.
d.
A wealthy individual who owns corporate bonds that pay her an interest rate of 8 percent per
year.