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Question 4 a) Explain, in no more than 100 words, the effect of the following scenario on the level of real interest rates: The Bank

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Question 4 a) Explain, in no more than 100 words, the effect of the following scenario on the level of real interest rates: The Bank of England announced the expansion of its Quantitative Easing programme and purchases another 100 billions of government bonds. (10 marks)

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