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To: SittinYonder

Yes. Lowering prices increases aggregate demand. Increasing demand in the face of limited supply is going to cause the prices to rise until they reach equilibrium. Prices will go right back to where they are now, the money will just be in someone else's pocket.


118 posted on 09/02/2005 11:39:43 AM PDT by Trust but Verify (( ))
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To: Trust but Verify

That's how I feel about this.


149 posted on 09/02/2005 1:15:51 PM PDT by okstate
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To: Trust but Verify

Lowering prices increases aggregate demand

Only assuming there is demand not being met. Far as I can see there is NO reason for increase demand since the existing demand is at saturation point. Their may be increases in aggregate demand over time, it is NOT, however, a short term outcome.


162 posted on 09/02/2005 3:37:52 PM PDT by MNJohnnie
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