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Ep. 2153 Dumb Excuses for the Fed

The Tom Woods Show

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What Is the Benefit of a General Fall in Consumer Prices?

If business firms expect prices to fall by the time they bring their goods to market, then therefore they're ging to be willing to pay less in the present for all the inputs. So if a general fall in prices is expected, then suppliers of these factors of production are going to have no choice but to accept these lower bids for their goods and services. And so an expected fall in consumer prices is factored in to the prices that business firms pay for the goods they use as inputs.

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