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A shortage of funds or savings makes higher interest rates and loan to investment decline, sending out too much of foreign capital funds, mistakes in monetary policy and fiscal policy, and reduction of costs due to the exchange rate factor. These are caused of the deflation when deflation or economic low is considered to be a very serious problem. These are the effects of deflation: Slow down investment of production, the employment decline, Sluggish economic recession into a long economic slump.
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