Watch the video below:

https://www.bing.com/videos/search?q=(macro)episode+32&&view=detail&mid=7E50EE6951EA993409547E50EE6951EA99340954&&FORM=VRDGAR&ru=%2Fvideos%2Fsearch%3Fq%3D%2528macro%2529episode%2B32%26go%3DSearch%26qs%3Dds%26form%3DQBVDMHLinks to an external site.

Hint: 1) Copy and paste if you have trouble with the url. 2) Search for (Macro) Episode 32 Monetary Policy.

Background Context:

This video gives a brief overview of the Fed's three monetary policy tools: Open Market Operations, the Required Reserve Ratio, and the Discount Rate.

Instructions from Professor: Reflect on this video and the material from class.

1. Provide a well-written essay. If bondholders expect the Fed to raise the interest rates what action(s) might the bondholders take? You may also answer this by discussing what other individuals might due in this situation. (Hint: Remember the importance of expectations.) Explain your rationale. Express your opinion, with analysis in mind, not emotion.