So a higher prime rate might discourage this vast borrowing, hurting the economy.

Higher rates, in turn, discourage investment and slow the economy.

High rates, in turn, discourage private borrowing.

Higher rates discourage spending financed with loans, thus reducing the demand for goods.

The higher rates discourage the borrowing that finances consumption and other economic activity, thus taking the upward pressure off prices.

As the story is told in Arkansas, the river's lethargic rate of flow past the Whitewater development site had discouraged sales.

But the foreign money disappeared anyway, and the higher rates discouraged economic activity, thus pushing the countries into recession and greater unemployment.

The number of fraud and the high rate of corruption in some countries also discourages people from paying over the Internet.

But Countrywide's loan servicing business stood to benefit, he added, because higher rates would discourage homeowners from refinancing.

Lower rates discourage investors from buying the dollars needed to purchase American securities.