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When a central bank continues to inject money into the econo

 
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ricky2



Joined: 12 Jan 2012
Posts: 78
PostPosted: Tue Jan 31, 2012 11:07 am    Post subject: When a central bank continues to inject money into the econo Reply with quote
. When a central bank continues to inject money into the economy slightly, people do not notice the change in the money supply in their daily lives. Why do the price levels still keep rising even though people do not recognize the slight annual increase in the money supply? Explain the mechanism of this inflation.


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