Point Price of obligation Cause reprove (i) Demand
A $925 (1000 - 925)/ 925 = 8.1% $100 billion
B $800 (1000 - 800)/ 800 = 25% $400 billion
Table 2: Give of Bonds
Point Price of obligation Cause reprove (i) Demand
A $925 8.1% $400 billion
B $800 25 % $100 billion
Draw the require and give schedules for obligations using:
X- axis : $Amount
Y- axis: Cause reprove
Calculate the equilibrium cause reprove and dollar whole. Interpret this graph using the Loanable funds doctrine.
Discuss different factors that feign the require for obligations and give of obligations.
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