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Indication of an increase in consumption

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Reference no: EM131527708

Given your knowledge about the effect of low interest rates on AD, the effect of AD on AS and employment, and the effect of access to credit on total consumption, do you think is it healthy for the economy in the long run if the household credit card debt keeps rising? Can we assume that an increase in credit card debt (which is an indication of an increase in consumption) is a path to restoring our economy to full employment? Justify your answer.

Reference no: EM131527708

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