1) Consumers often complain about rising prices of products such as oil whereas analysts might tell...

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1) Consumers often complain about rising prices of products such as oil whereas analysts might tell...

1) Consumers often complain about rising prices of products such as oil whereas analysts might tell them that in fact prices have not risen over the years at all but have in fact fallen. What explanation can you offer for this apparent contradiction.

2) Assume that the central bank fixes the money supply. What would be the effect on the value and the quantity of money if the central bank cut the money supply? What would you expect to happen to the price level?

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1) Consumers often complain about rising prices of products such as oil whereas analysts might tell...

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Add Answer to: 1) Consumers often complain about rising prices of products such as oil whereas analysts might tell...

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