Question

The purchasing power of people with _____ decreases a lot when inflation occurs.

rising incomes
fixed incomes

Answer 1

the purchasing power of people with fixed incomes decreases a lot when inflation occurs

Answer 2

With fixed incomes, because they will find that the money that they have, when inflation occurs, won't be as worth as much before. The people with rising incomes will rise along with the inflation rates, so they will not feel the effect.