Use the model of supply and demand for bonds to illustrate and explain the impact of each of the following on (a) eqiibrium quantity of bonds (b) equilibrium prices and (c) yields. Make sure you support your answer by explaining "why" those effects occur. Be as specific as you can be. a. Inflationary expectations in the economy fall which results in a much stronger response from bond issuers than investors. b. Data shows that the real estate market is going to weaken.

Question 12 Nearts with each carrying point. Tote 10 Point modelowly and demand for bonds to illustrate and explain the impact of each of the following on a human of bonds moyed Make sure you or your newer by eg why those cour Be as specific as you can be Intionary expectations in the economy fall which results in a much stronger response from bond issues than investors Point b. Data shows that the state market is going to weakens Points