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The figure to the right depicts the bond market. Explain the effect that a large federal deficit will have on interest rates. 1.) Using the
The figure to the right depicts the bond market. Explain the effect that a large federal deficit will have on interest rates. 1.) Using the line drawing tool, show the effect of this shock on the bond market. Properly label your line. 2.) Using the point drawing tool, indicate the new equilibrium bond price and quantity. Label the point '2'. Carefully follow the instructions above, and only draw the required objects. The effect of this shock will likely cause interest rates to remain unchanged increase decrease
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