How does increasing interest rates decrease inflation.

Question

asked Oct 26, 2023 77.6k views

1 Answer

Theanilpaudel · Answer 1 · 2023-11-02T02:22:32+0000

Answer:

As interest rates are increased, consumers tend to save because returns from savings are higher. With less disposable income being spent, the economy slows and inflation decreases.

Step-by-step explanation:

How does increasing interest rates decrease inflation.

Please log in or register to add a comment.

Please log in or register to answer this question.

1 Answer

Please log in or register to add a comment.

No related questions found

Categories

Other Questions