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Real Interest rate:
Nominal annual interest rate – annual inflation rate
Menu costs:
Costs to firms ofchanging prices
Increase in consumer spending
leads to demand-pull inflation if economy is currently operating at close or atfull employment.
Author
jacob
ID
44536
Card Set
Macroeconomics
Description
Chp11 Inflation
Updated
2010-10-24T16:29:37Z
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