Adjust the following graph to show the effect of a change in the bond market resulting from a decrease in business confidence. INTEREST RATE The Market for Loanable Funds Supply Demand QUANTITY OF LOANABLE FUNDS When confidence in the future decreases, bond prices, which means that interest rates are Demand 10 Supply and yields . As a result, the economy
Adjust the following graph to show the effect of a change in the bond market resulting from a decrease in business confidence. INTEREST RATE The Market for Loanable Funds Supply Demand QUANTITY OF LOANABLE FUNDS When confidence in the future decreases, bond prices, which means that interest rates are Demand 10 Supply and yields . As a result, the economy
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:Adjust the following graph to show the effect of a decrease in business confidence.
BOND PRICE
The Bond Market
QUANTITY OF BONDS
Supply
Demand
The following graph shows the market for loanable funds.
Demand
Supply

Transcribed Image Text:Adjust the following graph to show the effect of a change in the bond market resulting from a decrease in business confidence.
?
INTEREST RATE
The Market for Loanable Funds
Supply
Demand
QUANTITY OF LOANABLE FUNDS
When confidence in the future decreases, bond prices
which means that interest rates are i
Demand
101
Supply
and yields
. As a result, the economy
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