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Suppose in Pakistan this year the real income, price level, exchange rate, net taxes, conditions in the rest of the world, and expectations of future
Suppose in Pakistan this year the real income, price level, 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 the interest rate increases, this year in Pakistan
a.investment will rise.
b.investment will decline.
c.investment will remain unchanged.
d.investment may rise or decline.
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