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  3. in the liquidity-preference model, if the nominal

In the liquidity-preference model, if the nominal interest rate is higher than the equilibrium interest...

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Question

Accounting

In the liquidity-preference model, if the nominal interest rate is higher than the equilibrium interest rate

Question 29 options:

1)

bond prices will fall and nominal interest rate will eventually rise further

2)

both bond prices and nominal interest rate will eventually rise further

3)

bond prices will rise and nominal interest rate will eventually fall.

4)

both bond prices and nominal interest rate will eventually fall.

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