Answer:
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Step-by-step explanation:
In general, higher interest rates are a policy response to rising inflation. Conversely, when inflation is falling and economic growth slowing, central banks may lower interest rates to stimulate the economy.
Interest rates and inflation tend to move in the same direction – when inflation is increasing, banks will increase interest rates to encourage people to spend less and save more. In theory, this should reduce demand for goods and services, which helps to contain inflation.