13Chp5-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 GOVERNMENT BUDGET increased budget deficits shift the supply curve to the right EXPECTED INFLATION an increase in expected inflation shifts the supply curve for bonds to the right EXPECTED PROFITABILITY OF INVESTMENT OPPORTUNITIES in an expansion, the supply curve shifts to the right Shifts in the Supply of Bonds Asset Demand ...
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