As inflation pushes interest rates up,the cost of carrying inventory rises.

Name: As inflation pushes interest rates up,the cost of carrying inventory rises.
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Question

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When inflation increases, interest rates rise as well. This can make it more expensive for businesses to finance their inventory or maintain loans to purchase inventory. As a result, the cost of carrying inventory increases because it includes financing costs that are affected by changes in interest rates.

As Inflation Pushes Interest Rates Up,the Cost of Carrying Inventory