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Suppose in Bangladesh this year the price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future
Suppose in Bangladesh this year the price level, interest rate, exchange rate, net taxes, conditions in the rest of the world, and expectations of future trends in the economy are given for households and firms. If in this situation current real income temporarily increases, this year in Bangladesh
a.investment will rise.
b.investment will decline.
c.investment will remain unchanged.
d.investment may rise or decline.
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