W7919

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mp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³LUUDWLRQDO H[KXEHUDQ.H´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¶V YLHZ WKDW VXGGHQ ZDYHV RI EDQN IDLOXUH XQUHODWHG WR REVHUYDEOH IXQGDPHQWDOV SULRU WR  ZHUH ODUJHO\ UHJLRQDO DIIDLUV 7ZR RI :L.NHU¶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
View Full Document

This note was uploaded on 11/20/2013 for the course ECON 101a taught by Professor Staff during the Fall '08 term at University of California, Berkeley.

Ask a homework question - tutors are online