Question

During the 1970s when inflation accelerated, middle-class americans benefited primarily because

Answer 1

During the 1970s when inflation accelerated, middle-class Americans benefited primarily because the value of their mortgage debts decreased in real terms. This meant that the relative price at which they had bought their houses decreased and that those with mortgages had gotten their homes at a bargain.

Answer 2

Answer:

The value of their mortgage debts decreased in real terms.

Explanation:

Inflation refers to a measure of the rate at which the average price of certain goods and services in an economy increases over time. This means that the general level of prices is in rise, and a unit of currency buys less than it did before. This is also expressed as the loss in the purchasing power of a currency. However, inflation can also benefit some members of society. During the 1970s, inflation benefitted middle-class Americans because the value of their mortgage debts decreased in real terms.