Question 4: Please answer the following questions about the adverse consequences of inflation, which we discussed in the unit. A. Inflation erodes purchasing power of money. Explain. (3 marks). B. Inflation would affect the efficiency of the market in allocating resources. Explain. (7 marks) C. High inflation may disincentivise hard work by resulting in unintended redistribution of wealth from employees to employers. Explain. (10 marks). D. High inflation would result in people paying higher effective tax rates due to bracket creep. Explain. (10 marks)