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Define the macroeconomic stability in market for promoting development.
Macroeconomic stability implies that:
• Tight fiscal policy that is balanced government budgets and decreased health and also education budgets. Public sector employees may be made jobless to make sure G=T
• Tight monetary policy to attain low inflation that raises the costs of borrowing to firms.
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QUESTION (a) Explain the law of demand and the factors affecting demand. (b) Explain and illustrate how demand of a commodity will change if there is a tax on that product.
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