Show what happens to long-term treasury yields

Reference no: EM13295740

Using the tools of the supply and demand for bonds, show what happens to long-term Treasury yields in each of the following cases?

a. The US government deficit moves higher due to massive increased government spending.
b. Inflation expectations increase following resignation of Chairmen Ben Bernanke.
c. Concerned about impending retirement, baby boomers suddenly increase their saving rates.

Reference no: EM13295740

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