Why did not inflationary expectations push bond yield higher

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Reference no: EM132126413

Question: In 1993 the funds rate fell to 3% while the rate of inflation was also 3%. Bond yields also fell sharply that year. Since the funds rate was well below its equilibrium value, why didn't inflationary expectations push bond yields higher? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132126413

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