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The Bond Supply and Demand Framework Is Easier to Use

Question 73

Multiple Choice

The bond supply and demand framework is easier to use when analyzing the effects of changes in ________,while the liquidity preference framework provides a simpler analysis of the effects from changes in income,the price level,and the supply of ________.


A) expected inflation;bonds
B) expected inflation;money
C) government budget deficits;bonds
D) government budget deficits;money

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