Question

Evaluate who loses and who gains from inflation and distinguish between nominal and real interest rates

Short answer

Long term bond investors, retired people, credit card holders etc lose and stockholders and investors gain from inflation.

Step-by-step solution

introduction

Individuals who lose from inflation are - Long term bond investors, retired people, credit card holders etc.

Individuals who lose from inflation are - stockholders and investors etc.

explanation

The nominal interest rate is the rate of interest that doesn't represent inflation. It is the interest rate that is cited on stocks, securities and protections.

The real interest rate is the rate of interest that considers inflation. It is the real rate which is payable on stocks, securities and protections.