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The demand curve and Supply Curve for one year discount bond with a face value of...
demand and supply curve for one-year discount bonds with face value of S100 are represented by the following equation: Demand for bonds: Price =-0.8*Quantity+ 1,160 Supply of bonds: Price= Quantity +720 What is the expected equilibrium price? (2%) What is the expected interest rate in this market? (2%)
The demand curve and supply curve for one-year discount bonds with a face value of $1,050 are represented by the following equations: Bd: Price equals negative 0.8 Quantity plus1,160 Bs: Price equals Quantity plus 680 The expected equilibrium quantity of bonds is nothing. (Round your response to the nearest whole number.)
Suppose that the demand and supply curves for one-year discount bonds with a face value of $1,000 are represented by the following equations: Bd: Price = -0.6* Quantity + 1140 BS: Price = Quantity + 700 a) What is the expected interest rate in this market? b) Now suppose that the Federal Reserve sells 80 bonds that it holds. What is the new equilibrium interest rate in this market? What do you observe? Is this consistent with what you would...
I need help figuring out the second part of the question. The demand curve and supply curve for one-year discount bonds with a face value of $1,030 are represented by the following equations gt. Price=-08Quantity +1,160 Suppose that, as a result of monetary policy actions, the Federal Reserve sells 80 bonds that it holds. Assume that bond demand and money demand are held constant. Which of the following statements is true? 0 A. O B. If the Fed decreases the...
i. Consider the following demand and supply equations for one-year discount bonds with a face value of $1000. Bd: P = -0.6Q+1140 Bs: P = Q + 700 (6pts) Solve for the equilibrium values of P* and Q*, as well as i*. 6pts. (8pts) Suppose that, as a result of a monetary policy action, the Fed sells 80 bonds that it holds. Assume that Bd and Md are held constant. Write down the new BS equation. Calculate the effect of...
Name: Student ID 1) Draw the supply curve and demand curve to illustrate the market for Netflix subscriptions for each of the following parts a, b, and e. Label the supply curve S, and the demand curve D. Mark the initial equilibrium point , with an initial equilibrium price of Pand equilibrium quantity of Qi. a) Illustrate the effect of Netflix signing an exclusivity deal to stream popular anime. If the demand curve shifts, label the new demand curve D....
Create a graph with an aggregate demand curve and an aggregate supply curve in the short-run. Use the variable ‘Price Level’ for the vertical axis and ‘Real GDP’ for the horizontal axis. Indicate the equilibrium level of output and the price level. In essay form, describe a fiscal policy scenario that could result in a reduction of unemployment. Show the new equilibrium level of output and price level as a result of this policy in your graph. Explain how the...
Assume that both the demand curve and supply curve for mp3 players shift to the night but yhe demand curve shiftsmore than the supply curve. as a result a. the equilibrium price of mp3 players will decrease, the equilbrium quantity may increase or decrease b. the equilibrium price of mp3 players may increase or decrease, the equilbrium quanity will increase c. both the equilibrium price and quantity of mp3 players will increase
Graphically illustrate and explain the effect on the demand curve, supply curve, equilibrium price and equilibrium quantity of apple pies in response to each of the following. a. The price of apples (as an ingredient) increases. b. The price of coffee (a complement good) decreases
6. Monetizing the deficit One of the major objections to government budget deficits is that they may be inflationary. In addition, some worry that the Federal Reserve may monetize part of the deficit by buying some of the newly issued debt, potentially causing even more inflation. In general, a tax cut increases both real GDP and the price level, since it causes aggregate demand to increase. The following graph shows the demand and supply of bank reserves. Show the initial...