Equilibrium bond price and equilibrium quantity of bonds

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For each of the following situations, explain whether the demand curve for bonds, the supply curve for bonds, or both would shift. Be sure to indicate whether the curve(s) would shift to the right or to the left. What would be the effect on the equilibrium bond price and equilibrium quantity of bonds in each of these cases? Draw (a) diagram(s) in each case to explain your answer.

The federal government imposes a tax of $ 10 per bond on bond sales and bond purchases.

The economy experiences a period of rapid growth, with rising corporate profits.

Reference no: EM13897167

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