Economy, asked by wafulamoses5916, 5 months ago

Inappropriate government policy as a cause of economic flactuations

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Answered by sanjudnath

2

Answer:

Government policy can influence interest rates, a rise in which increases the cost of borrowing in the business community. Higher rates also lead to decreased consumer spending. Lower interest rates attract investment as businesses increase production. ... Businesses do not thrive when there is a high level of inflation.

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