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    Financial Markets and Institutions Study Set 1
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    Exam 4: Why Do Interest Rates Change?
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    Figure 4.4 -In Figure 4.4,the Most Likely Cause of a Decrease in of a Decrease
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Figure 4.4 -In Figure 4.4,the Most Likely Cause of a Decrease in of a Decrease

Question 78

Question 78

Multiple Choice

Figure 4.4
Figure 4.4    -In Figure 4.4,the most likely cause of a decrease in the equilibrium interest rate from i? t? i? is A)  an increase in the expected inflation rate. B)  a decrease in the expected inflation rate. C)  a business cycle expansion. D)  a combination of both A and C of the above.
-In Figure 4.4,the most likely cause of a decrease in the equilibrium interest rate from i? t? i? is


A) an increase in the expected inflation rate.
B) a decrease in the expected inflation rate.
C) a business cycle expansion.
D) a combination of both A and C of the above.

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