stion $12$ of $17$

Winners and losers at no net

Shoe leather costs

a$.$ When inflation is expected to be high, workers get paid more frequently and make more trips to the bank.

b$.$ Lanwei is reimbursed by her company for her work$-$related travel expenses. Sometimes, however, the company takes a long time to reimburse her.

Thus, when inflation is high, the reimbursement Lanwei receives is worth less than the expenses she incurred.

c$.$ Hector Homeowner has a mortgage with a fixed nominal $6\%$ interest rate that he took out five years ago. Over the years, the inflation rate has crept

up unexpectedly to its present level of $7\%.$