In the near future current data as well as data

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in the near future, current data as well as data reflecting the probable impact of passage of the legislation on the demand for funds are also included in the table… a. Draw the supply curve and the demand curve for funds using the current data (not a straight lines) b. Using your graph, label and note the real rate of interest using the current data. c. Add to the graph drawn in part a the new demand curve expected in the event that the proposed tax legislation is passed. d. What is the new real rate of interest? Compare and analyze this finding in light of your analysis in part b. P6-6 Nominal and real rates and yield curves A firm wishing to evaluate interest rate behavior has gathered data on the nominal rate of interest and no inflationary expectations for five U.S. Treasury securities, each having a different maturity and each measured at a different point in time during the year just ended. These data are summarized in the table.

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