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Figure 10.5 -Refer to Figure 10.5.A Shift from MP₁ to MP₃ Will

question 93

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Figure 10.5
Figure 10.5    -Refer to Figure 10.5.A shift from MP₁ to MP₃ will occur if A)  the term structure effect increases. B)  the default-risk premium decreases. C)  investors increase the short-term interest they expect in the future. D)  the Bank of Canada increases its target for the short-term nominal interest rate.
-Refer to Figure 10.5.A shift from MP₁ to MP₃ will occur if


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