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BBANBOB

08/02/19 12:44 PM

#583805 RE: jerrylev #583804

OH JERRY

""" I have never heard of use interest rate to control debt."""

IF IF IF interest rates are higher """ THE COST OF SERVICING THE DEBT IS MORE EXPENSIVE FOR THE GOVERNMENT""" lol
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clawmann

08/02/19 1:20 PM

#583809 RE: jerrylev #583804

An increase in interest rates is used to control inflation by two mechanisms:

(1) it reduces the appetite for debt and therefore debt-financed spending; and

(2) it increases savings, and therefore the use of current income for spending.