How do risk and inflation impact interest rates in the economy?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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How do risk and inflation impact interest rates in the economy?

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The inflation needs to be adjusted in the interest rate of mortgage payments. Due to which there is an increase in the rate of interest resulting in higher payments from the borrower.

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