If the inflation rate is high, what can we say about the following:?

1. The “confidence of the consumer” (this means are consumers spending?) My answer: Higher inflation will reduce the confidence of the consumer, causing the consumers to spend less. 2. Interest rates (i.e. would it be more or less expensive to get a loan?) My answer: Higher inflation leads to higher interest... show more 1. The “confidence of the consumer” (this means are consumers spending?)
My answer: Higher inflation will reduce the confidence of the consumer, causing the consumers to spend less.

2. Interest rates (i.e. would it be more or less expensive to get a loan?)
My answer: Higher inflation leads to higher interest rates, it would be more expensive to get a loan.

3. Unemployment rate
My answer: The unemployment rate decreases. Higher inflation leads to lower unemployment in the short run.

Please let me know if my answers are correct, I am not sure about #2. Thank you!
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