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The bond market is depicted in the graph to the right. Part 2 a. The bond demand curve is downward sloping because Part 3 A.
The bond market is depicted in the graph to the right. Part 2 a. The bond demand curve is downward sloping because Part 3 A. the Fed's decision to buy or sell bonds is independent of the interest rate. B. as the interest rate decreases people are willing to buy more bonds. C. the government sells more bonds at lower interest rates. D. lower bond prices translate into higher interest rates and returns. Part 4 b. Suppose the Fed decides to bonds. 1.) Using the line drawing tool, depict changes in the bond market. Properly label your line. 2.) Using the point drawing tool, label the new equilibrium point 'E Subscript 1'. Part 5 Carefully follow the instructions above, and only draw the required objects
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