How does inflation affect the economy?

1)   Erodes Purchasing Power. This first effect of inflation is really just a different way of stating what it is.

2) Encourages Spending, Investing. A predictable response to declining purchasing power is to buy now, rather than later.

3) Causes More Inflation.

4) Raises the Cost of Borrowing.  

5) Lowers the Cost of Borrowing.

Reduces Unemployment.

Explanation:

the increased occurrence of polygamy

the completion of the erie canal spurred the first great westward movement of american settlers, gave access to the rich land and resources west of the appalachians and made new york the preeminent commercial city in the united states.