What are bond prices and yields doing

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Question: Assume γ = .99 for Y1 and γ = .98 for Y2. Answer the following, with brief explanations:

What are the stock prices doing?

What are bond prices and yields doing?

Is there an extra interest rate effect on stock prices?

How is the Cd-curve shifting?

Given your equation for the money market, explain how P moves?

Explain in words the basic forces and incentives operating in this part of business cycle.

Reference no: EM132985091

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