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The Governor of the Reserve Bank of Australia announces in a press conference that he will fight the higher inflation rate with a new anti-inflation

The Governor of the Reserve Bank of Australia announces in a press conference that he will fight the higher inflation rate with a new anti-inflation program. Using both a bond demand and supply framework and the liquidity preference framework, predict what will happen to interest rates if the public believes him. Provide labelled graphs to support your answers. Are the results the same in the two frameworks?

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