Inflation is expected to increase

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Reference no: EM13857632

1. Provide an example of a Transaction Cost incurred in Direct Finance.

2. Describe (graphically and with a short explanation-make sure and properly label the graphs) what happens to the equilibrium interest rate when:

(i) inflation is expected to increase

(ii) the stock market crashes

(iii) government deficit goes down

(iv) money supply increases

Reference no: EM13857632

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