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Answer the following with reference to the Income-Expenditure model with the planned investment function of I(r) as presented in lectures. Assume that expected returns on

Answer the following with reference to the Income-Expenditure model with the

planned investment function of I(r) as presented in lectures. Assume that expected

returns on investment have risen over time after recovering from the GFC shock in

2008.

(i) How would this change be represented the investment function?

(ii) how might changing interest rates have influenced private investment between 2013-2020?

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