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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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