Economic Awareness - Sectors of Indian Economy
Inflation benefits which of the following groups in the economy?
Inflation benefits which of the following groups in the economy?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand income redistribution due to inflation
Inflation redistributes income between debtors and creditors because of changes in the real value of money.Step 2: Analyze who benefits
Debtors repay loans with money that has less purchasing power, effectively paying back less in real terms, thus benefiting from inflation.Final Answer:
Debtors → Option DQuick Check:
Inflation benefits debtors = True ✅
Quick Trick: Remember: Inflation helps debtors repay cheaper money.
Common Mistakes:
- Assuming creditors benefit because they receive repayments.
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes