Home sales in our area is down 24%, my heating bill has gone up, my water bill has gone up, my power bill has gone up dramatically this past year. Everything cost more! Interest rates are eating me alive!! Does inflation have anything to do with recession?
2006-08-16 11:16:51 · 3 answers · asked by Dominika 3 in Business & Finance ➔ Other - Business & Finance
Inflation can cause a recession, but it may not be the primary cause. A general rise in interest rates (unrelated to inflation) is a result of the government's beleif that the economy is growing too fast. Most recessions in the past have not been called recessions until after the fact, so it's hard to say if we're actually in a recession. You are right about the increasing energy prices and decreasing home sales, but that's just your area. Homes are still selling in Texas and Arizona, but there is a slowdown.
2006-08-16 11:24:36 · answer #1 · answered by heffinator 2 · 0⤊ 0⤋
No, the current economic indicators do not show our country as being in a recession, but that does not mean we are not headed in that direction.
2006-08-16 18:23:14 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My magic eight ball says its sources say yes!
2006-08-16 18:20:17 · answer #3 · answered by motherpeanutbutterbutinsky 6 · 0⤊ 0⤋