Why would interest rates go up with with the Dollar value going up?
I need to find out why interest rates would go up with the dollar value going up. Is it because people will spend more and that causes inflation and banks need to reduce that so they raise interest ? I'm a little confused!
Public Comments
- They raise interest rates to kerb spending, i.e. from loans and mortgages, credit cards, etc. If people overspend all the time then inflation will take place, i.e. the value of the dollar would actually go down.
- Simply put: The law of supply and demand.
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