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The model presented in this article is an adaptation of the IS-LM model for an open economy in which both the static aspects and dynamic ones are approached. The determination of marginal main indicators of GDP and interest rates, allow to identify problems and the directions of action to...
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The primary reason of this study is to test real interest rate and its impact on investment to the extent of Pakistan … span from 1964 to 2012. To test the long-term nexus among level of income, interest rate and investment mainly Johansen … Cointegration test is employed. The hypothesis of this study is that investment has an inverse association with real interest rate …
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