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    How a Recession Affects Certain Economic Variables

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    Hi, I need help understanding how everything connects together for the following question.
    Question: For each policy or event listed below, please indicate if it will increase (+), decrease (-), or it is uncertain (+/-) how it will affect the economic variable on the right-hand side.

    Fearing a recession, Americans begin to save a higher percentage of their incomes.
    Will:
    GDP (+)
    GDP (+) / ( - )
    GDP ( - )

    Then will:
    Interest Rates ( - )
    Interest Rates (+)
    Interest Rates (+) / ( - )

    Then:
    Price Level ( - )
    Price Level (+) / ( - )
    Price Level (+)

    And Finally:
    Value of $ (+) / ( - )
    Value of $ ( - )
    Value of $ (+)

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    https://brainmass.com/economics/pricing-output-decisions/recession-affects-certain-economic-variables-508101

    Solution Preview

    Solution:
    GDP -
    Interest rates -
    Price level -
    Value of money +/-

    If Americans begin to save a higher percentage of ...

    Solution Summary

    This solution explains if each event listed will increase, decrease, or have an uncertain effect on the economic variable listed.

    $2.19