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Use the model of supply and demand for bonds to illustrate and explain the impact of each of the following on the equilibrium quantity of
Use the model of supply and demand for bonds to illustrate and explain the impact of each of the following on the equilibrium quantity of bonds outstanding and on equilibrium bond prices and yields (draw a graph for each case)
d. All leading indicators point to stronger economic growth in the near future. The response of bond issuers dominates that of bond purchasers.
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