Which of the following will cause interest rates to rise? OA. People reduce their expectations of inflation. OB. Firms become pessimistic about the future profitability of new plant and equipment. OC. The stock market has become more volatile. D. The government increases its budget deficit. Refer to the figure on your right. Suppose the government runs a higher budget deficit than expected. 1.) Use the line drawing tool to show the shift in the demand and/or the supply curve of bonds. Carefully follow the instructions above, and only draw the required objects. Price of Bonds B B Quantity of Bonds
Which of the following will cause interest rates to rise? OA. People reduce their expectations of inflation. OB. Firms become pessimistic about the future profitability of new plant and equipment. OC. The stock market has become more volatile. D. The government increases its budget deficit. Refer to the figure on your right. Suppose the government runs a higher budget deficit than expected. 1.) Use the line drawing tool to show the shift in the demand and/or the supply curve of bonds. Carefully follow the instructions above, and only draw the required objects. Price of Bonds B B Quantity of Bonds
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please i need the answer for the graph
![Which of the following will cause interest rates to rise?
A. People reduce their expectations of inflation.
B. Firms become pessimistic about the future profitability of new plant and equipment.
C. The stock market has become more volatile.
D. The government increases its budget deficit.
Refer to the figure on your right. Suppose the government runs a higher budget deficit than expected.
1.) Use the line drawing tool to show the shift in the demand and/or the supply curve of bonds.
Carefully follow the instructions above, and only draw the required objects.
D
Price
of
Bonds
B₁
X
B
Quantity
of
Bonds
ON](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F11e35dd3-9d91-4c9a-bc6f-05bbe8f989e7%2Fc750ab6b-0c72-4b8b-a024-0861e5609bc0%2Fpt5x6o9_processed.png&w=3840&q=75)
Transcribed Image Text:Which of the following will cause interest rates to rise?
A. People reduce their expectations of inflation.
B. Firms become pessimistic about the future profitability of new plant and equipment.
C. The stock market has become more volatile.
D. The government increases its budget deficit.
Refer to the figure on your right. Suppose the government runs a higher budget deficit than expected.
1.) Use the line drawing tool to show the shift in the demand and/or the supply curve of bonds.
Carefully follow the instructions above, and only draw the required objects.
D
Price
of
Bonds
B₁
X
B
Quantity
of
Bonds
ON
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