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Answer to Question #299121 in Macroeconomics for Jordan
Question #299121
Explain the effect of deflation and suggests measures of controlling it
Expert's answer
Effects of deflation.
- Higher unemployment rates.
- Decline in incomes.
- Decline in consumers confidence.
Controlling deflation.
- Lowering bank reserve limits.
- Open market operations.
- Lowering target interests rates.
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