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Yeah, but people need to eat, get to work, etc. At some point businesses have to borrow replace aging equipment, etc. You need some base level investment in productive capacity to simply maintain that capacity. At some point it seems higher interest rates will make this investment more expensive.


Yes, and that's the entire point of manipulating interest rates to impact the economy. It's supposed to make things slow down.

Note that I'm not sure this is a good way of managing an economy, but it appears to be what much of the Western world does right now.




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