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Different issues equal, a discount in worth results in a decrease amount provided.
However different issues equal, worth by no means adjustments. Worth at all times adjustments as a result of different issues are usually not equal.
This tweet caught my eye:
That is an instance of what I name “reasoning from a worth change”. Don’t do it!
Most advocates of elevated housing building are proposing measures that might shift the provision curve to the best, leading to each decrease costs and better output.
Reasoning from a worth change is a quite common mistake. You see Fed officers doing this after they speculate that greater bond yields may sluggish the financial system. Not if the upper bond yields replicate greater demand for credit score.
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