Question

Explain the effect of inflation on production and distribution

Answer 1

Hey mate!

I am here with your answer!

When prices rise for energy, food, commodities, and other goods and services, the entire economy is affected. Rising prices, known as inflation, impact the cost of living, the cost of doing business, borrowing money, mortgages, corporate and government bond yields, and every other facet of the economy.

Hope this will help you!

Answer 2

distrupts price system, reduce savings, lack in foreign investment