Suppose there is an increase in investors willingness to hold bonds at a given price. Use the

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Suppose there is an increase in investors’ willingness to hold bonds at a given price. Use the model for the demand and supply of bonds to show that the impact on the equilibrium bond price depends on how sensitive the quantity supplied of bonds is to the bond price.

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Money Banking And Financial Markets

ISBN: 9780073375908

3rd Edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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