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Question: Given that the economy raise [is allowed to increase] by the banking system and creation of money through lending, if one market is down (i.e people are spending more on other goods) are we to suppose that these other firms that are facing increased demand will borrow enough (to expand) to counter balance the amount the depressed market would have borrowed - to bring in more money into the economy?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M9308994

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