The equilibrium prices of bonds

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Explain the impact of each the following on the equilibrium prices of bonds. (i)Inflationary expectations in the economy fall evoking a much stronger response from issuers of bonds than investors in bonds. (ii) All leading indicators point to stronger economic growth in the near future. The response of bond issuers dominates that of bond purchasers.

Please express the answer as detailed as possilbe. Giving the definition of the term would be great.

Reference no: EM131196213

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