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Assume the expected long run growth rate of the economy increased by 1 percent and the expected rate inflation increased by 4 percent What would happen to the required rates of return on government

Assume the expected long-run growth rate of the economy increased by 1 percent and the expected rate inflation increased by 4 percent, What would happen to the required rates of return on government bonds and common stocks? Show graphically how the effects of these changes would differ between these alternative investments.
 
 
 

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May 15 2020 View more View Less

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