The economy is doing just fine and the market for bonds is at equilibrium at $1000 and a quantity of 500 The economy then goes into a recession (Business Cycle Contraction). 1) Based on the material in the text and our discussion, Explain the SHIFTS in both the supply and Demand Curves for BONDS. NO explanation = no points 2) What will be the New magnatudily correct equilibrium Price and Quantity. Everyone can have different yet correct numbers. Hint: remember who the curves represent. We spent considerable time on Tuesday talking about this... This makes it much easier A movement along the bond demand or supply curve occurs when changes. Select one or more: O a. wealth ob. expected return O c. income O d. bond price The economist Irving Fisher, after whom the Fisher effect is named, explained why interest rates as the expected rate of inflation everything else held constant. A) rise; increases B) rise; stabilizes C) fall; stabilizes D) fall; increases Select one or more: O a. fall; increases O b. fall; stabilizes O c. rise; stabilizes d. rise; increases Suppose you buy a $300,000 home and put Zero down. You borrow the $300,000 as a 30 year mortgage at 3.25% annual rate. What is your monthly payment? All payments occur at the end of every month. Does your answer look correct??? If not please redo