culpeDC5304 culpeDC5304
  • 18-07-2017
  • Business
contestada

Why does increase interest rates cause capital inflow?

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mel3648
mel3648 mel3648
  • 23-07-2017
Because a lower interest rate means a lower cost of borrowing money. However policies cannot be applied to today's world, because policies never considered how to increase investment spending when there is so much debt on the consumer side and government side.
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