Macroeconomics question about inflation and money growth??

Suppose that people expect inflation to equal 3 percent, but in fact prices rise by 5 percent. Describe how this unexpectedly high inflation rate would help or hurt the following:

a. the government

b. a homeowner with a fixed-rate mortgage

c. a union worker in the second year of a labor contract

d. a college that has invested some of its endowment in government bonds

Macroeconomics question about inflation and money growth??

Well, it won%26#039;t hurt the homeowner because regardless of high inflation he%26#039;ll be paying fixed rate. Say my payments are $500 per month. If inflation is high value of $500 goes down, so you%26#039;re benefiting because you%26#039;re paying less.