In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is

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An increase in interest rates typically leads to an upward movement along the demand for money curve, as higher interest rates make holding money less attractive compared to interest-bearing assets.

In 2007, Interest Rates in Germany Were 4