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In: Economics

Other things being equal, what usually would happen to bond prices and interest rates(YTM) when the...

Other things being equal, what usually would happen to bond prices and interest rates(YTM) when the economy slips into a recession (Analyze using s graph. Plot the demand and supply of the bond in initial state (A) and add the new equilibrium (B)) [ Hint: the case here is the opposite of the business cycle expansion.]

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