Construct a response to the federal reserve actions aimed

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Reference no: EM1320199

Q1. The world demand for power transmission wire is made up of both domestic also foreign demands. Thus, the total demand is the sum of the 2 sub-demands, which are given as:

Domestic demand: Pd = 5 - 0.005Qd
Foreign demand: Pf = 3 - 0.00075Qf

Q2. "Construct a response to the Federal Reserve actions aimed at lowering long-term interest rates (referred to as "Oeveryation Twist") also the expected impact of this monetary policy on the valuation of short also long-term bonds.

Reference no: EM1320199

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