| 1. Inflation is beneficial for senior citizen |
| 2. Inflation is beneficial for fixed income citizen |
| 3. Inflation is beneficial for borrowers |
A) 1 only
B) 1 and 2
C) 2 only
D) 3 only
Correct Answer: D
Solution :
Inflation benefits borrowers, as it leads to a fall in the real cost of capital. But this is only a temporary phase and the interest rate is bound to go up w compensate for the inflation.
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