In Figure 4.4, the most likely cause of a decrease in the equilibrium interest rate from...

 

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In Figure 4.4, the most likely cause of a decrease in the equilibrium interest rate from 12 to it is an increase in the expected inflation rate. a decrease in the expected inflation rate. a business cycle expansion. a combination of both an increase in the expected inflation rate and a business cycle expansion of these. 0000 Price of Bonds P (P Increases 4) B B Quantity of Bonds, B Figure 4.4 8 81 Interest Rate, I Increases In Figure 4.4, the most likely cause of a decrease in the equilibrium interest rate from 12 to it is an increase in the expected inflation rate. a decrease in the expected inflation rate. a business cycle expansion. a combination of both an increase in the expected inflation rate and a business cycle expansion of these. 0000 Price of Bonds P (P Increases 4) B B Quantity of Bonds, B Figure 4.4 8 81 Interest Rate, I Increases

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