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The real balances effect is the impact on real gdp caused by the ____ relationship between the price level and the real value of financial assets.

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The answer to this question is "INVERSE relationship".Hence, to complete the statement, we have it the real balances effect is the impact on real GDP (stands for Gross Domestic Product) caused and as a result by the inverse relationship between the price level of the product and the real value of financial assets. When there is a higher GDP, there would be a lower mortality. The relationship between GDP and other constraints varies depending on the country.
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User Liviu Chircu
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