41.   Governments permitted the credit expansion required to finance the higher price level.

42.   The prices of another, broader category of goods began to rise faster than the general price level and attracted enormous sums of speculative funds.

43.   The economy will be at the full employment level of output, but excess demand will still exist so that the general price level will be forced upwards.

44.   As a consequence, the volume of bank deposits has a minor influence on the general price level and total expenditure.

45.   It is this extra spending which, given full employment and consequent constant number of transactions, pushes up the price level.

46.   This leads people to increase their spending directly on goods and services so that the general price level is pulled upwards.

47.   Most Keynesians, therefore, dispute the contention that changes in interest rates directly affect the price level.

48.   Find the average price level.

49.   What is the new average price level?