When interest rates are fixed, rises in the rate of inflation tend to penalize of financial capital, while of financial capital end up better off.

b. suppliers; demanders

Explanation:

When interest rates are fixed, rises in the rate of inflation tend to penalize suppliers of financial capital, while demanders of financial capital end up better off.

When inflation rates rise, the value of the currency i.e. the dollar, is eroded which means that it can only buy less or pay for less than it used to.

If interest rates are fixed, the interest payments are fixed which means that when the suppliers of the capital are paid back in a rising inflation environment, they get less dollars back which means that they are worse off.

The demanders of the capital however, will be effectively paying back less than they are supposed to pay so they will be better off.

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