Quote:
Originally Posted by Stu from NYC
If a companies borrowing costs go up they will do their best to increase prices for their product. That is inflation
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Low interest rates stimulate spending, economic activity, higher rates cool down the economy , that why the fed adjusts the interest rate, if any cost go up it will of course put pressure to raise the prices of goods and services business , taking out a loan for day to day expenses doesn't sound like a winning business plan, taking out a loan or floating a bond issue to expand a business, different, high rates discourage that depressing economic activity