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Inflation and interest rates

Business & Finance
Tutor: None Selected Time limit: 0 Hours

How are inflation and interest rates related? How does one affect the other? What is the "loanable funds" theory mean for all of this?


Mar 24th, 2015

When govt applies loose monetary police., which means low interest rate..With low Interest rates people shall borrow more money and make more investment. when there is more investment, there shall be low rate of unemployment. and when govt facilitate people with low interest rates, govt itself bears the cost and ultimatelty, inflation rises.

Mar 24th, 2015

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