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Originally Posted by Xaccers
People would buy less because in the past that new DVD that cost £20 now costs £30 so they aren't gonna just splash out.
That new car they had their eye on at £15k, now costs £25k, well they can't afford that.
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Yes, things would cost more, but people would have more money to spend. A DVD costing 50% more is irrelevant if you have 50% more money to spend. The net result is the same.