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21 December, 06:41

Consider the country of morrow which is currently operating at full employment. suppose there is a decrease in investment

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  1. 21 December, 06:55
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    When investment decreases, this will make the interest rate to increase. When interest rates increase, the money supply will will decrease, shifting the aggregate demand curve to the left. This will eventually lead to a decrease in total spending, which in turn will result in an increase in the unemployment rate.
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