In January 2005, the interest rate on bonds was 4% a year and it was expected it
Question:
a. Explain how “unusual buying” might lead to a low real interest rate.
b. Explain how investors’ “expectations for an economic slowdown” might lead to a lower real interest rate.
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Related Book For
Macroeconomics Canada in the Global Environment
ISBN: 978-0321778109
8th edition
Authors: Michael Parkin, Robin Bade
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