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Business, 21.02.2020 20:25 Kaiyla44

Suppose that because of a rising price level, consumer starts carrying more of their wealth as cash, in order to carry out transactions, and thus are less willing to put their wealth into other assets -such as stocks or bonds. Depict the effect this will have on the market for loanable funds, and explain what will happen to both interest rates and investment.

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Suppose that because of a rising price level, consumer starts carrying more of their wealth as cash,...
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