The ________ effect is a destabilizing effect associated with a falling price level.
A)Pigou
B)Keynes
C)expectations
D)real balance

Name: The ________ effect is a destabilizing effect associated with a falling price level. A)Pigou B)Keynes C)expectations D)real balance
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The expectations effect is a destabilizing effect associated with a falling price level. When prices are falling, people expect them to continue to fall in the future. This leads to a decrease in spending, which can lead to a recession.

The ________ Effect Is a Destabilizing Effect Associated with a Falling