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　　1.6
　　If interest rates are high:
　　A there will be an increase in investment
　　B output will increase, to satisfy increased demand
　　C the country’s currency will strengthen
　　D exports will increase (2 marks)
　　Required:
　　Each of the sub-questions numbered 1.7 to 1.8 below requires a brief written response. The
　　response should be in note form and should not exceed 50 words.
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