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Does the interest rate positively or negatively

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Reference no: EM131692033

Use the following information to answer the next 2 questions.

We assume that Investment is no longer exogenous and instead, I = I(Y, i).

Does the interest rate positively or negatively affect investment? Does the level of output positively or negatively affect investment?

Explain why the interest rate and output affect investment. (In 3 or fewer sentences for each explanation).

Reference no: EM131692033

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