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Kitty [74]
3 years ago
7

If the interest rate on borrowing is high, what is the consequence

Social Studies
1 answer:
Inessa05 [86]3 years ago
5 0
When interest rates increase too quickly, it can cause a chain reaction that affects the domestic economy as well as the global economy. It can create a recession in some cases. If this happens, the government can backtrack the increase, but it can take some time for the economy to recover from the dip.
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