Consider market for bonds. If an announcement by the Bank of Canada creates widespread expectation of lower interest rates in the future, then right now: Select one: OA. the equilibrium interest rate will go up and bond prices will go down. O B. the equilibrium interest rate will go down and bond prices will go down. OC. the equilibrium interest rate will go up and bond prices will go up. D. the equilibrium interest rate will go down and bond prices will go up.

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.