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padilas [110]
3 years ago
5

Assume that while the budget balance in Conania changes from positive to negative, capital inflow in Conania also decreases. How

will this affect private investment spending in Conania
Business
1 answer:
Aleks [24]3 years ago
4 0

Answer and Explanation:

In the case when the budget balance of the Conania varies i.e. from positive to negative so the capital inflow would decrease

Now this impact private investment spending in such a way that the situation would become worst and this would lead a serious crowding effect that ultimately reduce the economy

Hence, the same is relevant

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