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Joya_h

  • 3 years ago

is everyone worse off because of inflation? why or why not?

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  1. Libniz
    • 3 years ago
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    not if you have loan outstanding; and you are the borrower

  2. Joya_h
    • 3 years ago
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    can you just explain it little bit @Libniz

  3. Libniz
    • 3 years ago
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    well, say you borrow $100 with 1 percent interest; so without inflation , you would pay at $101 the end of the year; let say there way inflation and money is worth half of what it did last year. so $100 you borrowed has only value of $50 now; so even though you are paying $101 , it is worth same as 101/5 it did when you borrowed it

  4. Joya_h
    • 3 years ago
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    ok, thanks for helping. so, can you write me a complete answer? "yes or no" and "why or why not"? thanks anyway @Libniz

  5. Libniz
    • 3 years ago
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    I think my answer was more than complete if you bothered to actually read it

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