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Question 8 What impact will an increase in the general price level have on the interest rate and bond prices? The five answer choices can

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Question 8

What impact will an increase in the general price level have on the interest rate and bond prices? The five answer choices can be found in the attachment below.

image text in transcribedimage text in transcribed
Interest rate Bond prices Expected to increase Decrease Interest rate Bond prices Expected to decrease Remain unaffected Interest rate Bond prices Remain unaffected |Decrease Interest rate Bond prices Expected to increase |Increase Interest rate Bond prices Expected to decrease DecreaseReal rate of interest S R X D2 D D1 Q Quantity of loanable funds

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