Economic Awareness - Sectors of Indian Economy
During a period of rising inflation, which group is most likely to lose because their income does not adjust with increasing prices?
During a period of rising inflation, which group is most likely to lose because their income does not adjust with increasing prices?
easy Q11 of 15
Step-by-Step Solution
Step 1: Identify the concept
The question tests the impact of inflation on fixed income earners whose income remains constant.Step 2: Apply the concept
Fixed income earners lose purchasing power during inflation as their income does not increase with rising prices.Final Answer:
Fixed income earners → Option DQuick Check:
Fixed income earners = correct ✅
Quick Trick: Fixed income earners lose as income is not inflation-indexed.
Common Mistakes:
- Confusing fixed income earners with borrowers who benefit during inflation.
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