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Actions result in extremely low nominal rates

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If the Federal Reserve's actions result in extremely low Nominal Rates, how would this impact the Demand for Bonds? What would this response do to the Price of Bonds and Interest Rates? If the Government is running a budget deficit, how does this impact the Supply of Bonds? Note-this creates a dilemma in regards to the ultimate goal of low Nominal Rates-explain this dilemma.

Reference no: EM131691667

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