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For each of the following events: (1) Draw a graph of the bond market, label the axes and initial bond market equilibrium, E1. (2) Explain how the event causes the bond market to move from initial equilibrium, E1, to final equilibrium, E2. (3) What happens to bond prices and interest rates in going from E1 to E2? A. Investors expect higher interest rates in the U.S. in 2013. B.In 2013, the U.S. goes back into recession which is accompanied by deflation.

Business Economics, Economics

  • Category:- Business Economics
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