Coquitlam College Quantity of Bonds and Economy Questions




What will happen to interest rate, price of bonds and quantityof bondsif interest rates are expected to decrease dramatically, all other things constant? Show this on a graph.2The demand curve and supply curve for one-year discount bonds with a face value of $900 are represented by the following equations. What is the expected equilibrium price and quantity of discount bonds in this market?What is the yield to maturity in this market?

3 Supposethe interest rate in the economy falls. Starting from a long-run equilibrium, use a graph to show what will happen to the price level, real GDP, and employment in the short-run. Also, explain how output can return to the natural rate in the long-run without any government intervention.


Looking for a similar assignment? Our writers will offer you original work free from plagiarism. We follow the assignment instructions to the letter and always deliver on time. Be assured of a quality paper that will raise your grade. Order now and Get a 15% Discount! Use Coupon Code "Newclient"