158k views
1 vote
Who would be hurt the most during a period of inflation?

User Gertsen
by
7.6k points

1 Answer

6 votes

Answer:

Savers are much more likely to lose out if we get both high inflation and low-interest rates. For example, in the aftermath of the 2008 credit crisis, inflation rose to 5% (due to cost-push factors) but, interest rates were cut to 0.5%. Therefore, savers lost out during this period.

Step-by-step explanation:

User Alexander Ushakov
by
8.8k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories