History has shown a positive relationship between higher interest rates and higher subsequent rates of inflation.

Name: History has shown a positive relationship between higher interest rates and higher subsequent rates of inflation.
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Question

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Higher interest rates can lead to higher inflation because they make it more expensive for businesses to borrow money and invest in new projects. This can lead to a decrease in the supply of goods and services, which can then lead to higher prices.

History Has Shown a Positive Relationship Between Higher Interest Rates