An increase in inflation could put pressure on interest rates and pressure on prices of money market securities. a. upward; upward b. downward; downward c. upward; downward d. downward; upward

I think that an increase in inflation could put upward pressure on interest rates and upwards pressure on prices of money market securities. Inflation is the rate at which the general prices level for goods and services is rising and there is a consequent decrease in purchasing power. When interests rate are lowered many people are able to borrow more money from financial institution, which results to consumers having more money to spend, causing a growth in the economy and an increased inflation.