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help! If a central bank targets a path for the price level that grows at 2% per year, and inflation falls to 0% in a
help! If a central bank targets a path for the price level that grows at 2% per year, and inflation falls to 0% in a year, approximately what rate of inflation is needed in the next year to return to the target path? What maturity of interest rates have the greatest effect on aggregate demand? In addition to bond prices, changes in interest rates affect what other asset prices? and Changes in asset prices change wealth that affects which component of aggregate spending? Defaults and bankruptcies reduce the value of which reduces bank lending. In the Great Depression, countries with the worst contractions suffered
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