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Question 24 (answer 5/7) How do financial intermediaries play an important role in the economy? Use the editor to format your answer Question 25 (answer 5/7) Explain why the current bond prices and interest rates are negatively related. Use the editor to format your answer 8 Points Test Content 8 Points Question 26 (Answer 5/7) What is the impact on interest rates when the Bank of Canada decreases the money supply by selling bonds to the public? Use the editor to format your answer 8 Points Question 27 (Answer 5/7) Demonstrate graphically (use a graph editor or explain the movements of D&S) and explain the effect in the bond market of a decrease in the federal deficit. What is the effect on the interest rate and bond prices? How might capital spending be affected by the deficit? Use the editor to format your