Specialty Construction Group, Inc. added 7 new photos. We do things other than entrances as well! Retaining wall and sidewalk install at an office complex in Alpharetta. Complicated little site, but now the employees no longer have to wall in the street from the parking lot to the building.
The demand for money is a demand for real cash balances because people hold money for the purpose of buying goods and services. The higher the price level, the more money balances a person has to hold in order to purchase a given quantity of goods.
Market interest rates = real interest rate + inflatione. 2. Using the loanable funds theory. The real cost of borrowing falls. If inflation rises the borrower can pay back the lender with cheaper dollars. At the current interest rate the demander of loanable funds (borrower) is likely to want to borrow money.