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Vkishore
Pilla Bewarse
Username: Vkishore

Post Number: 368
Registered: 10-2011

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Posted on Friday, June 22, 2012 - 2:37 pm:   


Soggadu:

Idi thappu bro ... usual gaa to control the Inflation, governments usually increase the interest rates, which reduces the money flow.




Soggadu bhayya...general concept meeru cheppindi correct same ee link kuda ade cheptundi

http://money.howstuffworks.com/interest-rate4.htm


Article

So how do interest rates affect the rise and fall of inflation? Like we said earlier:

lower interest rates put more borrowing power in the hands of consumers. And when consumers spend more, the economy grows, naturally creating inflation. If the Fed decides that the economy is growing too fast-that demand will greatly outpace supply-then it can raise interest rates, slowing the amount of cash entering the economy.


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