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9 Suppose that Lauren is a sawy investor and expects inflation to equal 7 per cent in 2020, but, in fact, prices rise by only

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9 Suppose that Lauren is a sawy investor and expects inflation to equal 7 per cent in 2020, but, in fact, prices rise by only 4 per cent. How would this unexpectedly low inflation rate affect her in the following circumstances? a The federal government cuts income tax. b She has a fixed-rate mortgage home loan. c She is a casual worker with no labour contract in place. d She has invested in Treasury bonds

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