Deflationa falling price level, which would mean a negative rate of inflationwas a very real fear during the early stages of the Great Recession. Using a supply and demand analysis of bonds, explain the effect of expected deflation on the interest rate. A graph is required for this part of the question. Make sure that you label the graphaxes, curves, and significant pointsappropriately. Make sure also that you include a few sentences by way of explanation.
Deflation a falling price level, which would mean a negative rate of inflationwas a very real fear during the early stages of the Great Recession.
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