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1. Using the model of supply and demand for bonds to illustrate and explain the impact of the following events on the equilibrium quantity of

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1. Using the model of supply and demand for bonds to illustrate and explain the impact of the following events on the equilibrium quantity of bonds outstanding and on equilibrium bond prices and yields (10 points) a. Inflationary expectations in the economy rise. b. All leading indicators point to stronger economic growth in the near future. The response of bond issuers dominates that of the bond purchasers

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