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Answer to Question #258616 in Macroeconomics for Sherz

Question #258616

“Consumption and investment are complementary during deflation, but competitive at full


employment.” Discuss in detail.

1
Expert's answer
2021-10-31T18:39:57-0400

During deflation business people find ways to stabilize their business and replace the losses experienced before. However, during full employment people get stabilized and have chances to invest their money.


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