Elucidate the effect this policy would have on the nation

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Suppose Australia's unemployment rate began to rise, and the government passed an investment tax credit to help stimulate the economy. Explain the effect this policy would have on the nation's real risk-free interest rate, nominal interest rates, real and nominal GDP, gross private domestic investment, unemployment rate, inflation rate, real and nominal exchange rate, current account, financial/capital account and reserves account.

Reference no: EM1358425

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