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    Principles of Economics Study Set 8
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    Exam 26: Saving, Investment, and the Financial System
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    Bond a and Bond B Are Identical Except Bond B
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Bond a and Bond B Are Identical Except Bond B

Question 28

Question 28

Short Answer

Bond A and Bond B are identical except Bond B has a longer term. Therefore, we expect Bond _____ to pay a higher rate of interest.

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