Choice "A" is correct. A period of inflation increases the price level, which is inversely related to the purchasing power of money (inflation erodes the value of money).
Choice "d" is incorrect. When price levels increase, those with fixed amounts of money are hurt.
Choice "b" is incorrect. The relationship between price levels and the purchasing power of money is negative, or inverse.
Choice "c" is incorrect. Inflation helps anyone with a fixed obligation since the debt can be repaid in inflated dollars. Those receiving a specific fixed amount are harmed.
