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21 April, 20:25

Holding all other things constant, when the price level rises, interest rates:

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  1. 21 April, 20:53
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    The interest rate will also increase and firms will want to borrow less for new plants and gear and households will want to borrow less for homebuilding. And in addtion to that interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
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