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Business, 30.07.2021 02:50 kleathers97

Assume the short term real policy rate, current and expected had been 2%. Supposethe Fed decides to increase the short-term policy rate (r1t) from 2% to 3%. (usethe real stock price formula to answer these questions)(a) What happens to stock prices if the change is expected to be temporary, mean-ing it will only last one period

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