问答题 Inflation has several consequences all of which are bad. First, because the real value of money tends to decline, lenders of money, such as banks, are less willing to lend or are willing to do so only at higher interest rates. This makes borrowing more expensive, and thus may cause prices to rise even further, owing to the increased cost of borrowing. Second, there are many groups of people whose incomes are fixed or whose incomes tend to rise slowly and infrequently. In a period of inflation the living standards of these people fall and, as a result, they suffer hardship. Old age pensioners are examples of one of these groups. Third, when people see the value of money being eroded, they are less willing to save. Accordingly, there is less money available for investment in the new equipment which is frequently necessary if productivity is to increase. It may be more difficult, therefore, to absorb increased production costs. Consequently, prices continue to rise.