quiz\nquestion 5 of 10\nwhy would a governments central bank raise interest rates when inflation is…

quiz\nquestion 5 of 10\nwhy would a governments 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

quiz\nquestion 5 of 10\nwhy would a governments 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 can lower prices, helping to control inflation.