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Apply the model of supply and demand for bonds to explain the impact of each of the following on the equilibrium quantity of bonds outstanding

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Apply the model of supply and demand for bonds to explain the impact of each of the following on the equilibrium quantity of bonds outstanding and on equilibrium bond prices and yields: a. A new website is launched facilitating the trading of corporate bonds with much more ease than before. The new web site would (Click to select)y the relative liquidity of bonds, shifting the bond (Click to select) y curve to the (Click to select). (Click to select) the equilibrium price of bonds and (Click to select) yields. The equilibrium quantity of bonds outstanding (Click to select) b. Inflationary expectations in the economy fall, evoking a much stronger response from issuers of bonds than investors in bonds. For a given nominal interest rate, a fall in inflationary expectations (Click to select) the real interest rate, shifting the bond supply curve to the (Click to select) and the bond demand curve to the (Click to select) y). If the response of the bond issuers is relatively stronger, the (Click to select)y curve shift will dominate and the quantity of bonds outstanding will (Click to select) ). Regardless of the relative size of the shifts, the equilibrium price of bonds will (Click to select) and yields will (Click to select) c. The government removes tax incentives for investment and spends additional funds on a new education program. Overall, the changes have no effect on the government's financing requirements. The removal of tax incentives on investment would make investment more costly. (Click to select) the (Click to select) bonds by corporations and shifting the (Click to select) curve to the (Click to select), As there is no change in the financing requirements of the government, the (Click to select) v government bonds doesn't change. Equilibrium quantity (Click to select). Equilibrium bond prices (Click to select) and yields (Click to select) d. All leading indicators point to stronger economic growth in the near future. The response of bond issuers dominates that of bond purchasers. A business cycle upturn (Click to select) business investment opportunities, shifting the bond supply curve to the (Click to select) Because wealth increases, the bond demand curve shifts to the (Click to select) if the supply shift dominates, equilibrium bond prices (Click to select) and yields (Click to select) The equilibrium quantity of bonds outstanding (Click to select)

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