During periods of _____, the general tendency is toward higher interest rates.

Name: During periods of _____, the general tendency is toward higher interest rates.
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Question

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During periods of inflation, prices of goods and services increase, and the general purchasing power of money decreases. This leads to an increase in demand for money and a decrease in supply, which results in an increase in interest rates as borrowing becomes costlier.

During Periods of _____, the General Tendency Is Toward Higher