From an economic growth and prosperity level

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From an economic growth and prosperity level, we have to look at the role of the financial system. We know that high inflation means higher interest rates, which lead to less purchasing power and more investing (investors like higher interest rates!).

However, lower interest rates spark more lending for business growth, home and auto purchases, etc. How has economic policy affected the lending institutions today? If inflation rises how will it affect the economic recovery in the U.S.?

Reference no: EM13732483

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