Final answer:
Raising interest rates can help control inflation by reducing borrowing and spending, while also benefiting borrowers and penalizing lenders.
Step-by-step explanation:
Raising interest rates is a measure used by central banks to control inflation. When interest rates are increased, borrowing becomes more expensive, which discourages spending and promotes saving. This reduction in spending helps to bring inflation under control by reducing the demand for goods and services. However, high interest rates can also have negative effects, such as deepening a recession in the short run. Furthermore, rising inflation can have unintended consequences, benefiting borrowers who pay a fixed interest rate while penalizing lenders.