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Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869Macroeconomics 5th Edition by Olivier Blanchard
Edition 5ISBN: 978-0132159869 Exercise 6
The demand for bonds
In this chapter, you learned that an increase in the interest rate makes bonds more attractive, so it leads people to hold more of their wealth in bonds as opposed to money. However, you also learned that an increase in the interest rate reduces the price of bonds.
How can an increase in the interest rate make bonds more attractive and reduce their price
In this chapter, you learned that an increase in the interest rate makes bonds more attractive, so it leads people to hold more of their wealth in bonds as opposed to money. However, you also learned that an increase in the interest rate reduces the price of bonds.
How can an increase in the interest rate make bonds more attractive and reduce their price
Explanation
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An increase in the real interest rate of...
Macroeconomics 5th Edition by Olivier Blanchard
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