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Bond supply-bond demand model

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1. Using the bond supply/bond demand model, graphically illustrate and indicate the impact on i and q if the the U.S. government decreases marginal income tax rates while holding government expenditures constant.

2. Using the bond supply/bond demand model, graphically illustrate and indicate the impact on i and q if the Federal Reserve reverses its policy of quantitative easing at the same time business confidence declines.

3. Using the loanable funds model, graphically illustrate and indicate the impact on i and q if a new forecast for next year has expected inflation falls from 4.75% to 2.5%.

Reference no: EM131263479

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