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Process to control inflation rate
The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that started in the mid-1970s. Free-market economists argue that price stability is necessary for long-term economic growth since it creates necessary conditions for business confidence and private sector investment. If inflation is seen to be out of control then confidence is destroyed, businesses become uncertain and economic activity stagnates.
Q. Show the example on multiplier effect? Emma makes a deposit: Emma has 1,000 in her mattress and decides to deposit it in K-bank. Deposit won't affect the money
solutions to central problems of economy.
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