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AP Macroeconomics›Unit 5: Long-Run Consequences of Stabilization Policies›Long-Run Consequences of Stabilization Policies

Money Growth, Deficits, and Crowding Out

Too much money growth causes inflation; deficits can raise interest rates and crowd out private investment.

Quantity theory of money
National debt
Crowding out

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2 videos ranked by how well they teach

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5Long-Run Consequences of Stabilization Policies

Fiscal and Monetary Policy in the Short Run
The Phillips Curve
Money Growth, Deficits, and Crowding Out
Economic Growth

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Economic Growth

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Also called: crowding out, quantity theory of money