Unformatted text preview: Bond Market Equilibrium Interest Rates Market for Money: LPF Equilibrium Interest Rates in LPF Default on corporate bonds is on the rise? GDP growth forecasts are revised upwards because of new
technologies? The Federal Reserve minutes reveal signiﬁcant concern about
inﬂation picking up? The government deﬁcit rises due to increased government
spending? What happens to the price of/interest rate on a 2-year Treasury
note if Comparative Statics: Example Questions Asset Demand ...
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