Assume that a period of deflation leads to a rise in the supply of real money balances.

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Assume that a period of deflation leads to a rise in the supply of real money balances. Explain the effect of this change on the economy using the IS-LM model and then what effect it would have on aggregate demand and why.

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Economics

ISBN: 9781408093795

3rd Edition

Authors: Mark P. Taylor, N. Gregory Mankiw

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Question Posted: Nov 04, 2024 07:01 AM

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Assume that a period of deflation leads to a rise in the supply of real money balances.

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Economics

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