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q1 Question 3 (5 marks) Comment on the following statement: If the real interest rate falls from 5% (0.05] to 1% ( 0.01), the government

Question 3 (5 marks) Comment on the following statement: "If the real interest rate falls from 5% (0.05] to 1% ( 0.01), the government will be able to decrease current taxes without the need to increase taxes in the future.\

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