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Exhibit: Effects of Monetary Policy
-(Exhibit: Effects of Monetary Policy)
The shift in the demand for bonds from D1 to D2, in Panel (b)
Will result in a
Market Value
The current price at which an asset or service can be bought or sold in the open market.
Upward Sloping Yield Curve
A graph showing higher interest rates for longer-term debt compared to shorter-term debt, indicating investor anticipations of rising interest rates in the future.
Normal Curve
The normal curve, or normal distribution, is a bell-shaped curve that shows the probability distribution of a continuous random variable, where most occurrences take place near the mean.
Marginal Investor
An investor whose actions might influence the market price of a security and who is typically sensitive to changes in risk levels or return.
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