If the public expects the Bank of Canada to pursue a policy that is likely to raise

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If the public expects the Bank of Canada to pursue a policy that is likely to raise short-term interest rates permanently to 12%, but the Bank does not go through with this policy change, what will happen to long-term interest rates? Explain your answer.

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The Economics of Money Banking and Financial Markets

ISBN: 978-0321785701

5th Canadian edition

Authors: Frederic S. Mishkin, Apostolos Serletis

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