Question

High and unexpected inflation has a greater cost Group of answer choices for those who borrow than for those who save. for those who hold a little money than for those who hold a lot of money. for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation. All of the above are correct.

Answer 1

for those who have fixed nominal wages than for those who have nominal wages that adjust with inflation.

Step-by-step explanation:

Inflation can be described as a situation where there is continuous rise in the general price level of commodities in a country over a period of time.

One of the categories of people are affect most during high and unexpected inflation are those who have fixed nominal wages. The reason is that during high and unexpected inflation, their nominal wages now worth less than it was before the high and unexpected inflation. In order to avoid this, some workers now negotiate nominal wages that adjust with inflation so that the real value or worth of their wages will not be seriously affected whenever there is a high and unexpected inflation.

Therefore, high and unexpected inflation has a greater cost those who have fixed nominal wages than for those who have nominal wages that adjust with inflation.