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| M: +2.00/-0.67

Consider the following statements:

  1. Inflation benefits the debtors.
  2. Inflation benefits the bond-holders.

Which of the statements given above is/are correct?

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  1. ???????????? ?? ???????? ?? ??? ???? ???
  2. ???????????? ?? ?????-?????? ?? ??? ???? ???

??? ??? ?? ????? ??? ?? ??? ?? ??? ?? / ????

[Economics Prelims 2000-2018 Part-1]
A
B
C
D

EXPLANATION

For debtors, "real" interest rate goes down with inflation. Thus it be...
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