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Zero percent inflation in the foreseeable future

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Reference no: EM132639381

Use demand and supply diagram (draw the demand and supply and make necessary shifts) and explain what kind of effect the following will have on the current bond market conditions, namely bond prices and yields:

A. Inflationary pressures in the economy fall, everyone now expecting close to zero percent inflation in the foreseeable future

B. The president of the US pledges to bring down national debt.

Reference no: EM132639381

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