Economics 9708 · AS & A Level · Balance of payments

Balance of payments — practice question

During 2018, the inflation rate in Argentina was over 100%. Which pairing correctly shows the winners and losers in this period?

  • Awinners: firms selling goods abroad; losers: households paying back loans
  • Bwinners: firms unable to decrease real wages; losers: firms paying back loans on fixed monthly repayments
  • Cwinners: individuals with a high amount of debt at a fixed rate of interest; losers: households that hold most of their assets in cash
  • Dwinners: workers on fixed wage contracts; losers: the retired on fixed incomes

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