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Suppose that Lauren is a savvy investor and expects inflation to equal 7 per cent in 2020, but, in fact, prices rise by only 4
Suppose that Lauren is a savvy investor and expects inflation to equal 7 per cent in 2020, but, in fact, prices rise by only 4 per cent. How would this unexpectedly low inflation rate affect her in the following circumstances?a The federal government cuts income tax.b She has a fixed-rate mortgage home loan.c She is a casual worker with no labour contract in place.d She has invested in Treasury bonds
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