question 5 of 10\nwhy would a government’s central bank raise interest rates when inflation is high?\nto…

question 5 of 10\nwhy would a government’s central bank raise interest rates when inflation is high?\nto encourage people to spend less which can bring prices down\nto encourage people to spend more which can bring prices down\nto encourage people to spend less to increase demand and push prices up\nto encourage people to spend more to increase demand and push prices up

question 5 of 10\nwhy would a government’s central bank raise interest rates when inflation is high?\nto encourage people to spend less which can bring prices down\nto encourage people to spend more which can bring prices down\nto encourage people to spend less to increase demand and push prices up\nto encourage people to spend more to increase demand and push prices up

Answer

Answer:

To encourage people to spend less which can bring prices down

Brief Explanations:

When central bank raises interest - rates, borrowing becomes more expensive and saving more attractive. So people spend less. Reduced demand helps lower prices, curbing inflation.