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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

1
Expert's answer
2022-02-20T16:26:54-0500

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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