Fixed Income

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority and you can order it here)      

Income which does not fluctuate in accordance with the general price level.  Those whose income is wholly dependent upon the return from bonds, annuities, or pensions are said to have a fixed income.  While business incomes and wages tend to rise and fall with the general price level, fixed incomes do not.  The fixed-income class also includes workers whose salaries tend to resist adjustment to changes in the general price level.  A period of low prices is beneficial and a period of high prices disadvantageous to those having a fixed income.

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