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The "Yes - Markets Self-Adjust" Camp Argues That in a Recessionary

Question 102

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The "Yes - Markets Self-Adjust" camp argues that in a recessionary gap, all of these market adjustments will happen except,


A) price adjustments in the loanable funds market fix the saving problem for Say's Law.
B) falling wage rates decrease the quantity of labour demanded.
C) falling interest rates increase business investment.
D) falling output prices increase aggregate quantity demanded.
E) falling output prices increase net exports.

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