How Come ???

Question

Mortgage interest rates increase up so inflation can decrease??

Is that right?

Answer 1

When mortgage rates are low, that means there is more money available, more money available means, More money= the less the value, then goods demand more of the "cheap money" for their stuff

So what Bush did was lower fed intest rates for the past year, trying to stave off the recession, by putting more money in circulation, but it devalued the dollar, now that there are alot more out there- this caused inflation.