Suppose the government announces that based on a just, Financial Management

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Suppose the government announces that based on a just

Suppose the government announces that, based on a just completed survey, the growth rate in the economy is likely to be 2% in the coming year, as compared to 5% for the year just completed. Will security prices increase, decrease, or stay the same following this announcement? Does it make any difference whether or not the 2% figure was anticipated by the market?

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