Which outcome is NOT associated with excessive inflation?

Excessive inflation typically leads to a variety of economic outcomes that affect consumer behavior, investment strategies, and the overall economic environment. When inflation rises significantly, one of the consequences is increased price instability, as higher prices can fluctuate wildly, making it difficult for consumers and businesses to predict costs. Additionally, higher nominal interest rates often arise as lenders seek to compensate for the eroding purchasing power of money, which is an expected reaction to inflationary pressures. Furthermore, inflation can lead to the evaluation of future investments as less secure, as investors may become uncertain about the future value of their returns when inflation erodes the actual purchasing power of their investment gains.

In contrast, increased consumer savings is generally not associated with excessive inflation. In fact, during periods of high inflation, consumers are more likely to feel the pressure from rising prices on necessities, which can discourage saving. The diminished value of cash savings relative to its purchasing power often leads individuals to spend rather than save. Thus, excessive inflation typically correlates with reduced consumer savings as individuals prioritize immediate consumption over setting aside funds that will lose value over time.