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Forecast the changes in the financial strength that might take place if the following changes takes place in the macroeconomic fundamentals. 1. Expected inflation rate

Forecast the changes in the financial strength that might take place if the following changes takes place in the macroeconomic fundamentals.

1. Expected inflation rate to increase 3%

2. Current GDP is -4.5 %

3. Unemployment rate 3%

4. Interest rate 4%

5. Exchange rate has depreciated 5%

6. Government is giving out subsidy and also increasing tax rates to finance its expenditure.

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