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re: Can someone explain why raising interest rates in recession helps?
Posted on 9/26/22 at 2:12 pm to ChunkyLover54
Posted on 9/26/22 at 2:12 pm to ChunkyLover54
Theory is to reduce demand. Most people borrow for homes, vehicles etc. The higher interest diminishes that and with the reduced demand should bring down prices. Econ 101 but its just not that simple especially with an administration that seems to be countering that lever on multiple fronts.
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