Economics

What Happens To Inflation When Interest Rates Rise?

Simultaneously, this is precisely what reduces the rate of inflation. When demand for products and services increases, prices often rise. When borrowing becomes more expensive, however, demand for goods and services decreases across the economy. Although prices may not necessarily fall, the rate of inflation will usually fall. Consider a used vehicle store, where the

What Happens To Inflation When Interest Rates Rise? Read More »