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2min chapter
S E35: Connecting Interest Rates & Output
Think Like An Economist
How the Real Interest Rate Shapes the Economy
We need to separate this sort of short run analysis from the long run. Government spending and government taxes also can really impact business cycles. If people don't buy all the stuff that businesses are capable of producing, then executives decide they're better off producing less than their potential. And those things cause real pain for families.
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