According to economic theory,interest rates reflect expectations about likely _____.

Name: According to economic theory,interest rates reflect expectations about likely _____.
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Interest rates reflect expectations about the future inflation rates. When inflation is expected to be high, interest rates tend to rise to compensate for the expected loss of purchasing power of money. Conversely, when inflation is expected to be low, interest rates tend to be lower as well.

According to Economic Theory,interest Rates Reflect Expectations About Likely _____