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What happens to Bond prices, quantities and interest rates if (Make sure to include the supply...

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Finance

What happens to Bond prices, quantities and interest rates if(Make sure to include the supply and demand graph for bonds foreach question

a) reduction in wealth

b) Increase in risk

c) Increase in liquidity

Answer & Explanation Solved by verified expert
4.3 Ratings (548 Votes)
This is Answer for the various reasons for effect on Bond pricebond quantity interest rate1Reduction in wealth Every reduction in wealth result into decrease in the demand ofthe bond which affect price rate of    See Answer
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What happens to Bond prices, quantities and interest rates if(Make sure to include the supply and demand graph for bonds foreach questiona) reduction in wealthb) Increase in riskc) Increase in liquidity

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