1) For each of the following cases use the supply and demand analysis for bonds to the show the effect on interest rates. [Must draw diagrams and give explanation to support your answers]

a. Bank of Canada increases the money supply by purchasing bonds from the public.

b. Inflation is expected to rise from 1% to 3%

c. Economy starts moving towards a strong contraction in the business cycle

d. Sudden increase in peoples expectation of future real estate prices

e. Expectation of interest rates to go up