What happens to the interest rate and investment in response, Macroeconomics

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What happens to the interest rate and investment in response

Problem

Suppose that the government decreases taxes by the same amount it decreased government spending. What happens to the interest rate and investment in response to this balanced-budget change? Explain in words, and possibly using formulas to support your argument.

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Macroeconomics: What happens to the interest rate and investment in response

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