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1. During 2003, we began to stop worrying that inflation was a problem. Instead, we began to worry about deflation, a decline in the price level. Assume that the Fed decided to hold the money supply constant. What impact would deflation have on interest rates?

2. [Related to Economics in Practice on p. 219] How many times a week do you use an ATM? If ATMs were not available, would you carry more cash? Would you keep more money in your checking account? How many times a day do you use cash?

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Category:- Computer Engineering
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