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Unformatted text preview: 2) Draw diagrams of the following dynamics using the supply and demand diagrams explained in Ch5. Label your diagrams carefully and completely: For the Bond Market: Diagram a) an increase in expected inflation- Bd: decrease (p. 99) Bs:increase (p.101) Diagram b) a business cycle expansion that results in no change in the bond price (assume the price is fixed, $10.00) Bs: For the Money Market: Diagram c) a business cycle expansion Diagram d) a decrease in the money supply Please turn in the diagrams and a printout of your essay in class Wednesday July 21 st ....
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This note was uploaded on 02/08/2011 for the course ECONOMICS 201 taught by Professor Bush during the Summer '10 term at Rutgers.
- Summer '10