Which of the following would likely be affected by inflation?

The interest rate on fixed-income securities is particularly sensitive to inflation because it directly influences the purchasing power of the returns that these financial instruments offer. When inflation rises, the real return on fixed-income securities decreases, as the amount of money received in the future will buy less than it would today.

As a result, investors demand higher interest rates on newly issued fixed-income securities to compensate for the erosion of purchasing power caused by inflation. This is why the interest rates on bonds and other fixed-income assets typically rise when inflation increases, as investors seek to maintain their real yields.

On the other hand, while equity prices of technology companies, the value of collectible items, and the liquidity of real estate assets can also be influenced by economic conditions including inflation, the specific and direct impact of inflation is most prominently felt in fixed-income securities due to the way their returns are structured.