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For each of the following cases use the supply and demand analysis for bonds to the show the effect on interest rates. a. Bank of
For each of the following cases use the supply and demand analysis for bonds to the
show the effect on interest rates.
a. Bank of Canada decreases the money supply by selling bonds to the public.
b. Inflation is expected to fall from 3% to 1%
c. Economy starts moving towards a strong recovery of the business cycle
d. Sudden increase in people's expectation of future real estate prices
e. People expect interest rates to go
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