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Economics for Today 7th Edition by Irvin Tucker
Edition 7ISBN: 978-1133154457Economics for Today 7th Edition by Irvin Tucker
Edition 7ISBN: 978-1133154457 Exercise 2
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 balances effect.
B) interest-rate effect.
C) net exports effect.
D) substitution effect.
A) real balances effect.
B) interest-rate effect.
C) net exports effect.
D) substitution effect.
Explanation
Verified
Verified
1. Real balances effect
2. Interest rate...
Economics for Today 7th Edition by Irvin Tucker
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