Following the financial crisis of 2008, American consumers cut back on new car purchases. In response to

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Following the financial crisis of 2008, American consumers cut back on new car purchases. In response to the decline in car sales, Congress passed the program “Cash for Clunkers, ” which allowed consumers to trade in their old car and receive a cash stipend to purchase a new vehicle. Which principle of economy-wide interactions is at work here?

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Macroeconomics

ISBN: 9781319245269

6th Edition

Authors: Paul Krugman, Robin Wells

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