Unformatted text preview: expensive credit 3. A reduction in inventories due to the stimulation of consumption relative to production in the short run 4. Managers respond by increasing prices to bring inventories back to their normal levels since they are already producing at or near capacity levels since they are already producing at or near capacity. 5. In the long-run, long-term interest rates may start increasing in response to higher inflation. 33...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Monetary Policy