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An increase in interest rates tends to moderate economic growth. Higher rates result in an increase of the cost of borrowing and reduction in the amount of disposable income. Consequently, this restricts the growth in consumer spending. On the other hand, a reduction in the interest rates leads to an increase of the number of people that are willing to borrow and make big purchases.
The Atlantic World was characterized by interactions between the nations bordering the Atlantic Ocean, which became possible mostly because of the trade (Tomich 10). American silver and gold for money and the consumption of American-produced coffee, tobacco, and sugar were prevalent throughout Europe.
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