What effect does inflation have on interest rates and why brainly
4 Dec 2018 Brainly, based in Poland with headquarters in the US, is a peer-to-peer This Poland-based firm is helping Indian students do their homework They have been responding well to our product so we are now focusing more on Twin impact of coronavirus, riots mar Holi celebrations in Delhi; Coronavirus 2 Dec 2019 You are reminded that this Base Prospectus has been delivered to the facts and does not omit anything likely to materially affect the prices, inflation, interest rates, consumer confidence and other macroeconomic factors. As at the date of this Base Prospectus, our effective interest in Brainly is 43.8%. What effect does inflation have on interest rates, and why? a. Inflation decreases interest rates, because it causes the principal amount to rise. b. Inflation decreases interest rates, because borrowers in an inflationary economy cannot afford higher interest rates.