12-06-2006, 08:35 AM
A high interest rate increases the inflation
Cost of Production + Interest paid on loan = Net Cost of production + Profit = Price
So in this equation put a higher interest amount and see how it will increase and decrease the price.
Cost of Production + Interest paid on loan = Net Cost of production + Profit = Price
So in this equation put a higher interest amount and see how it will increase and decrease the price.