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graph above to answer this question. Why is an interest rate of r1 untenable? Because people will buy bonds to obtain more money thereby causing
graph above to answer this question. Why is an interest rate of r1 untenable? Because people will buy bonds to obtain more money thereby causing the interest rate to increase. Because people will buy bonds to obtain more money thereby causing the interest rate to fall. Because people will sell bonds to obtain more money thereby causing the interest rate to fall. Because people will sell bonds to obtain more money thereby causing the interest rate to increase. Because people will buy bonds to get rid of their excess money balances thereby causing the interest rate to increase
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Macroeconomics
Authors: N. Gregory Mankiw, William M. Scarth
5th Canadian Edition
1464168504, 978-1464168505
