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Higher interest rates could dampen inflation because: higher interest rates => cost of credit increases => TE decreases => demand decreases => lower prices. higher
Higher interest rates could dampen inflation because: higher interest rates => cost of credit increases => TE decreases => demand decreases => lower prices. higher interest rates => cost of credit decreases => TE decreases => demand decreases => lower prices. higher interest rates => cost of capital increases => TE increases => demand decreases => lower prices. higher interest rates => investment decreases => TE increases => demand increases => lower prices
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