Consider the following:
• Banks the lend money to customers
• Consumers using credit cards for purchases
• Retired people on fixed incomes
• College students taking out student loans
Your readings argue that inflation “redistributes income” in ways that are not necessarily fair or equitable. Some individuals or companies are much more vulnerable to the effects of inflation than others. Some people and companies have the ability to adjust income and spending to combat the redistributive impact of price increases more than others. Using the list above, rank them from the least vulnerable to the most vulnerable. Then explain in detail why you ranked them as you did. This explanation should follow the following format.
1. List the four from least to most vulnerable.
2. Paragraphs 1through 4: Explain the issues facing each person/company in their ability to deal with inflation. Use one paragraph for each of the four. This should include information about how well they can adjust both their spending and income. Remember to explain thoroughly. For example “Old people on fixed incomes can’t increase their income.” Is not an explanation. It is a topic sentence that requires several sentences to explain. Tell me the whole story!!
3. Paragraph 5: Explain why you selected the ranking that you did.