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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- Summer '10
- Economics, The Economist, Financial Times, Georgia Bush Assignment