What is the main problem for people on a fixed income during a period of chronic inflation?
A. Their income will not increase, so their purchasing power falls.

B. They have to ask for an increase in wages to match inflation.

C. Their investments will not pay as much interest.

D. They have to wait for the government to react to the crisis.

Question

What is the main problem for people on a fixed income during a period of chronic inflation? 
 A. Their income will not increase, so their purchasing power falls.  
 
 B. They have to ask for an increase in wages to match inflation.  
 
 C. Their investments will not pay as much interest.  
 
 D. They have to wait for the government to react to the crisis.

anonymous · Answer

The only good answer is A.  As for govt reaction, it should only react to try and stem the inflationary bubble.  wmw

anonymous · Answer

The correct answer among the choices is A.