11 The accompanying diagram shows data for the interest rate on 10-year euro area government bonds and

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11 The accompanying diagram shows data for the interest rate on 10-year euro area government bonds and inflation rate for the euro area for 1996 through 2016, as reported by the European Central Bank. How would you describe the relationship between the two? How does the pattern compare to that of Canada in Figure 10-10?

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Macroeconomics

ISBN: 125377

3rd Canadian Edition

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

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