O-LevelEconomicsGovernment and the macroeconomy2281/12 · May/June 2014 · Q221 Mark
In 2013 there was a period of low interest rates and high inflation in an economy. Who would be most likely to benefit and who most likely to lose during such a period? [Figure 22]
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Abenefit: borrowers, lose: savers
Bbenefit: consumers on fixed incomes, lose: firms wishing to invest
Cbenefit: credit card companies, lose: sellers of luxury goods
Dbenefit: exporters, lose: banks
✓ Correct answer
A: benefit: borrowers, lose: savers
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