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Answer any two of the following using the model of supply and demand for bonds. Illustrate and explain the impact of the following on the equilibrium quantity of bonds, prices and yields (Show your work in a separate sheet and upload):

a. Inflationary expectations in the economy fall evoking a much stronger response from issuers of bonds than investors in bonds. [S Points)

b. The government removes tax incentives for investment and spends additional funds on a new education program. Overall, the changes have no effect on the government's financing requirements. [5 Points)

C. All leading indicators point to stronger economic growth in the near future. The response of bond issuers dominates that of bond purchasers. (5 Points]

Click Submit to the terment Question 7 10 Points Anwer any two of the following using the model of supply and demand for bonds and explain the impact of the women and yields (Show your work in a separate sheet and upload 2. Inflationary expectations in the economy fall evokon a much stronger response from suers of bonds than investors in bonds. 1 points b. The government removes tax incentives for investment and spends additional funds on a new education program Overall the changeven efect on the government financing requirements. Points All leading indicators point to stronger economic growth in the near future. The response of band issuers dominates that of bond purchasers. S Points For the toolbar, press ALT F10 (PO) or ALT INF10 (Mach. B 7 W8 Paragraph Arial 14 A I Check Submit a cow the aument. Question 7 110 Points Answer any two of the following using the model of supply and demand for bonds werdeplain the other on them to and yields (Show your work in a separate sheet and upload inflationary expectations in the economy fall evoking a much stronger response from suers of bonds than investors in bonds. Is Points b. The government removes tax incentives for investment and spends addicional funds on a new education program Overall, the changes aventtecton the governments financing requirements. 5 Points All leading indicators point to stronger economic growth in the near future. The response of branders dominates that of bond purchasers. Pas For the toolbar, press ALT+F10 (Por ALT INF10 Mac), B T S Paragraph Arial 14px Av > a Submit to complete cuent Question 7 110 Points Answer any two of the following using the model of supply and demand for bonds and in the impact of the follow them to and yields (Show your work in a separate sheet and upload 1. Inflationary expectations in the economy fall evoking a much stronger response from suers of bonds than investors in bonds. Point b. The government removes tax incentives for investment and spends addicionat funds on a new education program Overall, the changes have a clear on the governments for requirements. 5 Points c. All leading indicators point to stronger economic growth in the near future. The response of bond issues dominates that of bond purchasers. 15. Paints For the toolbar, press ALT+F10 (PC or ALTEFNF10 (Mac) / BS Paragraph Arial 14px A T. 10 ++ a

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