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Q. |
Other things equal, if the real interest rate falls and business taxes rise: |
A. | we can be certain that investment will rise. |
B. | investment will rise until it is equal to saving. |
C. | we can be certain that investment will fall. |
D. | we will be uncertain as to the resulting change in investment. |
Answer» D. we will be uncertain as to the resulting change in investment. |
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