Unexpectedly low inflation rate

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Reference no: EM13774284

Suppose that inflation was expected to equal 6 per cent in 2015, but prices rose by only 3 per cent. How would this unexpectedly low inflation rate help or hurt each of the following?

a) The federal government

b) A homeowner with a fixed-rate mortgage

c) A worker with a 5-year fixed-term wage contract

d) A casual worker who has no labour contract

e) A private school that has invested some of its endowment in government bonds.

Reference no: EM13774284

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