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Classical economists argue that real interest rates were so high in the early 1980s because a. bankers overcame their money illusion about nominal vs. real

Classical economists argue that real interest rates were so high in the early 1980s because a. bankers overcame their money illusion about nominal vs. real interest rates, but they refused to believe that disinflation was a reality b. bankers developed a bad case on money illusion c. borrowers developed a bad case of money illusion d. inflation shot up unexpectedly e. the government targeted higher interest rates

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