Illustrate what are some of the damaging effects deflation

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Q. Illustrate what are some of the damaging effects deflation has on an economy? Elucidate what would be a monetary policy prescription to reduce or eliminate deflation? How would deflation affect your business or a business you are familiar with?

Q. Define price elasticity of demand by given that a decrease in price from $300 to $200 per orange result in an increase in quantity demanded from 80 to 120 oranges? Thus, calculate the price elasticty of demand?

Reference no: EM1347604

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