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Price of Bonds P P Increases ) Interest Rate, i B2reases Quantity of Bonds, B Figure 4.4 In Figure 4.4, the most likely cause of
Price of Bonds P P Increases ) Interest Rate, i B2reases Quantity of Bonds, B Figure 4.4 In Figure 4.4, the most likely cause of the increase in the eculibium interest rate from i to 2 s at)inthe increase: expected inflation rate O decrease: expected inflation rate increase: government budget deficit O decrease; government budget deficit
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