High inflation usually leads to high interest rates. Similarly, interest rates decline when inflation is _.
Correct answer: C. low
- A. High
- B. Increasing
- C. low
- D. Continuing
Explanation
The sentence suggests that high inflation leads to high interest rates, and conversely, low inflation leads to declining interest rates. This is because low inflation reduces the need for high interest rates to control inflation, allowing for more relaxed monetary policies.
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