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What are bond prices and yields doing

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Question - The economy achieves its maximum growth at γ = 1.06. The points picked on the growth cycle are γ = 1.058 for Y1 before the peak and γ = 1.058 for Y2 after the peak. Answer the following, with brief explanations:

-What are the stock prices doing?

-What are bond prices and yields doing?

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

Reference no: EM132999914

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