ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation

Question 1

ECO 203 Week 2 DQ 2 Who Benefits and Who Loses from Inflation

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Who Benefits and Who Loses from Inflation

Inflation is an important policy issue because it causes a redistribution of income and wealth, and discourages saving and investment. Discuss how inflation affects borrowers and lenders, asset prices, and households on fixed incomes.

Reference: Chapter 4, section 4.3: Gainers and Losers from Inflation.

Guided Response: Review and respond to at least two of your classmates’ posts by sharing any ideas you may have about how households and businesses can protect themselves against inflation. Be sure to refer to concepts found in the reading when responding to your classmates.

Answer 1

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