Answer on Other Economics Question for Faizal lerrr
Evaluate and explain as accurately as you can the manner in which each of the following individual or party would be affected by fairly rapid inflation?
Explain for A Pensioner who receives fixed monthly income
Fairly rapid Inflation affects to the real income of certain citizens and families differently. If the salary of working members of the family grows in proportion to a rise in prices or the family owns some apartment (their cost grows together with inflation), they will nothing lost. The standard of living of pensioners, who has the fixed monthly income, seriously suffers from inflation. The prices for the goods and services grow regularly, and the income of pensioners is revised by the government periodically and raises practically always with delay, lagging behind rates of fairly rapid& inflation. The people who are saving money, refusing consumption, bear vain victims. Their accumulation can depreciate too.