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    Exam 2: Determinants of Interest Rates
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    In October 1987 Stock Prices Fell 22 Percent in One
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In October 1987 Stock Prices Fell 22 Percent in One

Question 16

Question 16

Essay

In October 1987 stock prices fell 22 percent in one day and bond rates fell also. Use the loanable funds theory to explain what happened.

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The worsening of perceived future econom...

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