2. In a closed economy, how would each of the following events affect bond price and...

2. In a closed economy, how would each of the following events affect bond price and market interest rate? Use the figures of both bond market and market of loanable funds to illustrate the changes to the interest rates.

A. The expected rate of inflation decreases.

B. The federal government runs a budget deficit.

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Ans:

Rahul Sunny answered 2 days ago

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