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Analyse how each of the following events might affect investment: (a)Inflation increases and the central bank does not seem to care. (b)Inflation increases and the

Analyse how each of the following events might affect investment:

  1. (a)Inflation increases and the central bank does not seem to care.
  2. (b)Inflation increases and the central bank reacts by raising the interest rate more than the increase in the inflation rate.
  3. (c)A tax reform induces more workers to enter the labour market.

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