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How would a cut in government expenditures leading to a decrease in budget deficit (keeping all the other factors constant) affect bond prices? Explain and
How would a cut in government expenditures leading to a decrease in budget deficit (keeping all the other factors constant) affect bond prices? Explain and show with the help of a well-labeled demand and supply diagram for bonds. Please also state the impact of this change in bond prices on interest rates.Immersive Reader
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