Suppose the government announces that, based on a just completed survey, the growth rate in the economy is likely to be 2 percent in the coming year, compared to 5 percent for the year just completed. Will security prices increase, decrease, or stay the same following this announcement?

Home Blog Suppose the government announces that, based on a just completed survey, the growth rate in the economy is likely to be 2 percent in the coming year, compared to 5 percent for the year just completed. Will security prices increase, decrease, or stay the same following this announcement?

Suppose the government announces that, based on a just completed survey, the growth rate in the economy is likely to be 2 percent in the coming year, compared to 5 percent for the year just completed. Will security prices increase, decrease, or stay the same following this announcement?

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Suppose the government announces that, based on a just completed survey, the growth rate in the economy is likely to be 2 percent in the coming year, compared to 5 percent for the year just completed. Will security prices increase, decrease, or stay the same following this announcement? Does it make any difference whether the 2 percent figure was anticipated by the market? Explain.

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