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Question 4 [Suppose government allocates more funding to universities for vaccine research. Assuming no change in government tax revenue (and any other factor in the

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Question 4 [Suppose government allocates more funding to universities for vaccine research. Assuming no change in government tax revenue (and any other factor in the economy), this policy is likely to have a positive effect on private investment in the economy. Note: Private investment refer to investment in physical capital by firms and residential investment by households. (Hint: think about the effect of this policy in Loanable Funds Market).]

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