17 Jul What will happen to interest rate in the economy if inflation rate increases?
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Answer the following Questions: 1. Suppose the economy is currently producing at the natural rate of output. Using an Aggregate demand and Aggregate Supply analysis, explain how an increase in income taxes will affect unemployment and inflation rate in the long run, everything else held constant 2. What will happen to the price and quantity of Telus stocks if interest rates in the economy increase? Explain 3. What will happen to interest rate in the economy if inflation rate increases? Explain briefly
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