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How does the fed raising interest rates reduce inflation?
| Adulterous irradiated meetinghouse dysfunction | 01/26/22 |
| Adulterous irradiated meetinghouse dysfunction | 01/27/22 |
| Unholy sanctuary tattoo | 01/27/22 |
| Adulterous irradiated meetinghouse dysfunction | 01/27/22 |
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Date: January 26th, 2022 11:34 PM Author: Adulterous irradiated meetinghouse dysfunction I don't understand economics so I need someone to explain this to me like the idiot I am. (http://www.autoadmit.com/thread.php?thread_id=5017559&forum_id=2#43854263) |
Date: January 27th, 2022 7:42 AM Author: Adulterous irradiated meetinghouse dysfunction (http://www.autoadmit.com/thread.php?thread_id=5017559&forum_id=2#43855022) |
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Date: January 27th, 2022 7:45 AM Author: Unholy sanctuary tattoo People having lots of money to spend causes inflation. Higher interest rates means that it costs people more to borrow money, which means they can't as easily refinance their mortgage to take money out to spend, they can't buy cars at 0% interest, companies have to pay more to borrow money which means they have to be more prudent about spending it etc.
Similarly there's more reward for saving/not spending money, which decreases spending/inflation. Parking money in a CD or savings account returns more than it did before the rate increase. |
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Date: January 27th, 2022 8:14 AM Author: Adulterous irradiated meetinghouse dysfunction TY for the real answer. Makes sense.
I wonder if it will bring home prices down or just simply stop the increase. |