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Figure 10.5 -Refer to Figure 10.5.A Shift from MP₁ to MP₃ Will

Question 93

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Figure 10.5
Figure 10.5 -Refer to Figure 10.5.A shift from MP₁ to MP₃ will occur if A) the term structure effect increases. B) the default-risk premium decreases. C) investors increase the short-term interest they expect in the future. D) the Bank of Canada increases its target for the short-term nominal interest rate.
-Refer to Figure 10.5.A shift from MP₁ to MP₃ will occur if


A) the term structure effect increases.
B) the default-risk premium decreases.
C) investors increase the short-term interest they expect in the future.
D) the Bank of Canada increases its target for the short-term nominal interest rate.

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