What can be a direct consequence of inflation for consumers?

• A. Lower interest rates on loans
• B. Increased costs for goods and services
• C. Higher savings interest rates
• D. More job availability

Answer: (B)

Inflation directly affects consumers by leading to increased costs for goods and services. When the general price level rises, the purchasing power of money declines, which means that consumers need to spend more to acquire the same items they previously bought for less. This can create a financial strain, as households will find that their expenses on necessities like food, fuel, and housing increase.

The other options do not represent direct consequences of inflation. Lower interest rates on loans typically occur in environments where inflation is low, as central banks aim to stimulate the economy. Higher savings interest rates usually result from efforts to counteract inflation rather than its direct effects. Lastly, more job availability is influenced by various factors, including economic growth and labor market conditions, rather than directly stemming from inflation.