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How would you expect interest rates to respond to the following economic events (what would be the direction of the interest rates changes)? Explain why.

How would you expect interest rates to respond to the following economic events (what would be the direction of the interest rates changes)? Explain why.

Increase in investments;

Increase in savings level;

Decrease in export;

Decrease in import;

Increase in government spending;

Increase in Taxes.

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