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please give proper explanation 1) Comment on the effect of a new regulation that increases cost of doing business and therefore decreases return on capital

please give proper explanation

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1) Comment on the effect of a new regulation that increases cost of doing business and therefore decreases return on capital (profitability) of corporations on the real interest rate, desired saving an investment and net exports for a a) small economy b) large economy when a) There is an initial net export surplus. b) There is an initial net export deficit. Hint: You have to analyze 4 different cases

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