Explain the relationship between inflation and interest rates? (Econ)

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asked Mar 8, 2021 35.4k views

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Nurul Huda · Answer 1 · 2021-03-12T17:35:03+0000

Answer:

There is a general tendency for interest rates and the rate of inflation to have an inverse relationship. ... In general, when interest rates are low, the economy grows and inflation increases. Conversely, when interest rates are high, the economy slows and inflation decreases.

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Explain the relationship between inflation and interest rates? (Econ)

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