About the future of the economy to fall significantly

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Suppose that the collapse of two large financial institutions within a year cause a stock market crash and causes expectations about the future of the economy to fall significantly (sound familiar?). What should happen to the equilibrium price, interest rate and quantity of bonds in the bond market, assuming there is only one kind of bond. It should be obvious that you need graphs and a brief written explanation to answer this question.

Reference no: EM131459194

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