Q money theory of asset demand risk of bonds relative

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Q money  Theory of Asset Demand     :   Risk of bonds relative  to other investments increases, left down In book, shows diff charts of diff scenarios -   Expected Return increases, Demand should increase (right) -   Expected Return falls, Demand should decrease (left) -   Expected interest rates rise, P bond  falls, D bonds move left Rate of return = current yield + gain(loss)
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                                                   > increasing interest-rates, potential of price of bond to  fall, leading to loss -   Expected inflation increase, changes our willingness to hold bonds (demand shifts to  left) -   Expected inflation decrease, demand will shift right Business Expansion, expected   profitability of investment ^, S bonds  right, P v, i ^ -   Expected inflation ^, supply shifts right -   Gov't deficits ^, S shifts to right, i ^ GDP = C + I + G + X – M Business Expansion – can we explain what happens to interest rates in this scenario? -   Wealth increases along with National Income D shifts right & businesses see  profitable opportunities   S moves right -   Change in price may appear to be ambiguous Data historically, interest rates rise during expansion Expectations of inflation: 
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