how does raising interest rates fight inflation?

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How does raising the interest rates fight inflation? From what I’m seeing in real estate, the higher rates keep home prices low(er) than they could go. Is that why? But what about car loans? Help!

(No politics please)

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4 Answers

Anonymous 0 Comments

Remember that “inflation” applies to the money supply in general, so any analysis of it should not be restricted to specific markets such as the real estate or car loan markets.

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