0
What would fed do to interest rates if it wanted to fight inflation?
Wiki User
∙ 11y ago
Use a monetary policy to decrease the money supply.
Wiki User
∙ 11y ago
Wiki User
∙ 8y agoreduce the money supply
Add your answer:
Earn +20 pts
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
During Carter's administation how did the government try to fight inflation?
The Federal Reserve began raising interest rates
When inflation increases interest rates go .?
duck it
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
Do interest rates rise when inflation declines?
Interest rates are simply the price of money. When inflation declines, interest rates typically decline also.
If expected inflation increases interest rates are likely to increase?
Yes, inflation and increases in interest rates usually go hand-in-hand, though inflation is not the sole cause of an increase in interest rates
During Carter's administation how did the government try to fight inflation?
The Federal Reserve began raising interest rates
When you are earning interest is it better to have high or low rates?
High rates.However, high interest rates are usually a consequence of high inflation rates and so what matters is not the interest rate but the real interest rate which is the nominal interest rate relative to the inflation rate.Thus a 3% interest rate when inflation is 1% is better that a 5% interest rate when inflation is 4%.
When inflation increases interest rates go .?
duck it
How do interest rates and inflation affect real estate in south Africa?
explain how do intrest rates and inflation affect the real estate
Impact of recession?
high interest rates such as the repo rates and high inflation rate
Why would interest rates go up if inflation is high?
no
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
What is required to slow down inflation?
the government can slow down inflation by reducing bank interest rates.
Can inflation lead to lower interest rates and higher stock prices?
False
What are the interest rates for a student loan?
The interest rates for a student loan are typically fixed at the annual inflation rate. This is true of that of the UK. Higher rates are typical in other countries.
