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How does macro-economic stabilisation assist growth?
Economic agents as the consumers, private zone and overseas investors as like multi nationals make decisions based onto confidence and certainty. Inflation and exchange rate fluctuations make this complicated to plan ahead and decrease confidence into the economy. Investment therefore growth is decreased.While governments deliver macro stability the domestic private zone and overseas investors have enhanced confidence, increased expectations and raise planned investment. FDI increase Making sure macroeconomic stability implies
elasticity concept occupies a central place in policy formulation. Explain in details.
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