The president of the United States announces in a press conference that he will fight the higher inflation rate with a new anti
-inflation program. Predict what will happen to interest rates if the public believes him. As a result of the president's announcement, people's expectations of inflation will ▼ rise fall , which causes the demand for bonds to shift to the ▼ right left . However, the lower expected inflation rate causes the cost of borrowing to ▼ rise fall , so the supply of bonds will ▼ decrease increase , which causes the supply curve for bonds to shift to the ▼ right left . The impact of this change in bond demand and supply will cause equilibrium interest rates t
As a result of the president announcement people expectation of inflation will <u>fall</u> which causes the demand for bonds to shift to the<u> right</u>.However the lower expected inflation causes the cost of wages to <u>rise</u>,So the supply of bobs will <u>decrease,</u>which causes the supply curve for bonds to shift to the <u>left.</u>
The impact of this change in bond demand and supply will cause equilibrium interest rate to <u>Decrease.</u>
The geohelpgraphic location of this region of Asia induces many forms of natural disasters—volcanoes, earthquakes, typhoons, monsoons, and subsequently, massive floods.
PROBLEM SOLVING teams consist of members of a department or functional area coming together in an effort to improve work activities or solve specific problems by sharing ideas and proffering solutions.