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re: Macro Econ: Low gas prices -> higher disposable income -> higher spending / GDP?
Posted on 2/18/15 at 10:05 pm to euphemus
Posted on 2/18/15 at 10:05 pm to euphemus
Intuitively, that makes sense on the surface. The other side of the coin is that lower oil prices may, as the Fed puts it, establish a new "retrenchment" of employment in the O&G industry, after the positive effects of increased consumer spending have been exhibited. The energy industry has been immensely important for the domestic economy since the financial crisis.
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