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When the supply of credit is fixed, an increase in the price level stimulates the demand for credit, which, in turn, reduces consumption and investment spending. This effect is called the
A) real balance effect.
B) interest-rate effect.
C) net exports effect.
D) substitution effect.
A) real balance effect.
B) interest-rate effect.
C) net exports effect.
D) substitution effect.
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1. Real balances effect
2. Interest rate...
Economics for Today 9th Edition by Irvin Tucker
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