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Discuss in detail how each of the following actions will affect the level of planned investment spending and unplanned inventory investment. Assume the economy is initially in income–expenditure equilibrium. Organize your responses in paragraphs. You must also respond to at least two other students’ postings. This means that each student posting must be a minimum of three. a. The Federal Reserve raises the interest rate. b. There is a rise in the expected growth rate of real GDP. c. A sizable inflow of foreign funds into the country lowers the interest rate.

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