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Economics

For each of the following cases, explain the likely effects on demand/supply, use demand and supply analysis to show the effect on equilibrium interest rates (increase or decrease), other things being equal:

Covenants on borrowing become more restrictive

The Federal Reserve increases the money supply

Higher taxes on capital gains

Federal government borrows to finance budget deficit, and Federal Reserve buys Treasury securities through open market operations (OMO).

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91725536

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