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4. The demand curve and supply curve for bonds are estimated using the following equations: Demand: P = - (5/6)Q + 1000 Supply: P =
4. The demand curve and supply curve for bonds are estimated using the following equations: Demand: P = - (5/6)Q + 1000 Supply: P = (1/3)Q + 700 As the stock market continued to rise, the Federal Reserve felt the need to increase the interest rates. As a result, the new market interest rate increased to 8%, but the equilibrium quantity remained unchanged. What are the new demand and supply equations? Assume parallel shifts in the equations.
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