The demand for money and bonds You have learnt in this chapter that the interest rate affects

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The demand for money and bonds You have learnt in this chapter that the interest rate affects both the prices of bonds and the demand for money. Explain each of these relationships.

Do these relationships hold when interest rates are negative? Why do you think central banks would choose to lower interest rates in their economies in the negative domain?

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Macroeconomics

ISBN: 9781292160504

7th Global Edition

Authors: Olivier J. Blanchard

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