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16. Business cycles and confidence and yields . As a result, the economy When confidence in the future decreases, bond prices , which means that

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16. Business cycles and confidence and yields . As a result, the economy When confidence in the future decreases, bond prices , which means that interest rates are Adjust the following graphs to show the effects of a decrease in business confidence on the bond market, the market for Ioanable funds, and the market for goods and services. The Bond Market -o- Supply Demand Supply BOND PRICE Demand QUANTITY OF BONDS ? The Market for Loanable Funds Supply Demand Supply INTEREST RATE Demand QUANTITY OF LOANABLE FUNDS 16. Business cycles and confidence and yields . As a result, the economy When confidence in the future decreases, bond prices , which means that interest rates are Adjust the following graphs to show the effects of a decrease in business confidence on the bond market, the market for Ioanable funds, and the market for goods and services. The Bond Market -o- Supply Demand Supply BOND PRICE Demand QUANTITY OF BONDS ? The Market for Loanable Funds Supply Demand Supply INTEREST RATE Demand QUANTITY OF LOANABLE FUNDS

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