Starting in 2009, the interest rates on Greek government bonds rose to over 20%. What was the most important factor in the increase in long-term rates in this time period? Expected future inflation Default risk premium Expectation that the short-term interest rate would be zero “for an extended period” Rise in Greek household savings

Starting in 2009, the interest rates on Greek government bonds rose to over 20%. What was the most important factor in the increase in long-term rates in this time period? Expected future inflation Default risk premium Expectation that the short-term interest rate would be zero “for an extended period” Rise in Greek household savings

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.7P

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