The Inflation Rate

Refer back to page 70 in Leslie Lum’s Introduction to Business.

The graph entitled "Inflation rate" at the top of the page shows the direction inflation has gone from 1914 to 2007. Review this graph and read the text below it. High interest rates can hurt businesses because consumers are less likely to buy when interest rates are high. Additionally businesses find it expensive to purchase equipment and other overhead they may need to prosper.