Answer to Question #32534 in Macroeconomics for osama
a) What can be the company’s expectations about the change in interest rates in the future? Why?
b) How would these expectations affect the company’s cost of borrowing on its existing loans and on future debt?
c) How these expectations would affect the company’s decision when to borrow funds and whether to issue floating-rate or fixed rate debt?
2. Assume that the government makes a major sale of bonds to the private sector.
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