27Chp5-Econ3310 - Bond Market Equilibrium Interest Rates...

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Unformatted text preview: Bond Market Equilibrium Interest Rates Market for Money: LPF Equilibrium Interest Rates in LPF We get a first idea of how monetary policy works. An increase in the money supply engineered by the Federal Reserve will shift the supply curve for money to the right Assume that the supply of money is controlled by the central bank Shifts in the Supply of Money Asset Demand ...
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This note was uploaded on 02/14/2012 for the course ECON 3310 taught by Professor Dix during the Fall '08 term at York University.

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