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2. Explain how each of the following situations would affect interest rate and consequently, the equity market. a) Sudden increase of capital expenditure by the

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2. Explain how each of the following situations would affect interest rate and consequently, the equity market. a) Sudden increase of capital expenditure by the businesses (5 Points) b) Decrease of household savings in the market (5 Points) c) Sudden increase of money supply in the market (5 Points)

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