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Reply to "I genuinely don't understand these rate hikes"
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[quote=Anonymous]My concern is that all the time tested economic models don’t factor in the pandemic and the modern globally connected economy. Higher rates means businesses have less access to money to increase supply. In some industries this doesn’t matter because the components needed come from countries that are far behind on their orders. For businesses, the only option right now is to hang on to as high a price as you can charge with wider profit margins than increase your supply, hoping to be able to take consumers from your competitors by offering lower prices. [/quote]
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