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Question 4 - (6 points) Predict the effect on the interest rate of the following events using the bond supply and demand framework analysis. Be
Question 4 - (6 points) Predict the effect on the interest rate of the following events using the bond supply and demand framework analysis. Be sure to include a graph in each case. A. Business News Network quoted that Minister of finance is predicting the widening of the budget deficit in 2020, and, that, Canada will turn into even wider deficit by 2021. B. The Business Insider Intelligence Magazine quoted that "Stocks had a very bad run during March 2020 due to the Corvid 19 pandemic. Economists predict a further decline at the end of 2020, C. The Bank of Canada Governor predicted a lower than expected inflation expectation. Question 4 - (6 points) Predict the effect on the interest rate of the following events using the bond supply and demand framework analysis. Be sure to include a graph in each case. A. Business News Network quoted that Minister of finance is predicting the widening of the budget deficit in 2020, and, that, Canada will turn into even wider deficit by 2021. B. The Business Insider Intelligence Magazine quoted that "Stocks had a very bad run during March 2020 due to the Corvid 19 pandemic. Economists predict a further decline at the end of 2020, C. The Bank of Canada Governor predicted a lower than expected inflation expectation
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