Describe the effect of the bond buying program

Reference no: EM131967881

Question: We discussed in class that the ECB now conducts open market operations in corporate bonds. Suppose the ECB begins an unanticipated massive corporate bond buying program designed to stimulate the economy. Assume also this program has no effect on stock valuations. Describe the effect of this bond buying program on the following economic variables.

- The bb schedule.

- The ee schedule

- The distribution of corporate income

- Financial leverage

Reference no: EM131967881

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