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When the government issues a bond in the two-period model of Chapter 9, it promises to repay Question 13 options: the original amount lent. 1/(1+r)
When the government issues a bond in the two-period model of Chapter 9, it promises to repay Question 13 options: the original amount lent. 1/(1+r) units of consumption goods in the second period (1+r) units of consumption goods in the second period the real interest rate r. r units of consumption goods in the second period
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