erefore face rising costs and have reduced disposable income. As a result their living standards are reduced. This contributes to a widening income inequality which could also lead to the other social costs including increased crime ad divorce rates.
             - A distortion of investment decisions, that is investment will be encouraged into speculative rather than productive assets. The lack of productive investment in the form of funding infrastructure or buying factories is an opportunity cost as it is reducing the potential for economic growth, thus also increasing unemployment. The short term speculative funds also have the effect of increasing uncertainty in the market which as a vast number of negative consequences, including a decrease in confidence by financial markets. Capital flight may occur, and associated problems may arise.
             - Reduced international competitiveness is anot
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