Question: 1. Using the bond supply/bond demand model, graphically illustrate and explain the impact on I and q if the government were to simultaneously increase the

1. Using the bond supply/bond demand model, graphically illustrate and explain the impact on I and q if the government were to simultaneously increase the personal income tax and the corporate profits tax to pay for everyone to have a “free” college education.

2. Using the loan able funds model, graphically illustrate and explain the impact on i and q if all bond trade (paid by the buyer) are abolished.

3. using either model graphically illustrate and explain the impact on i and q of the impact on the bond market of a “normal” business cycle expansion.

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To address these questions lets walk through each using the appropriate models and theoretical frameworks Question 1 Bond SupplyBond Demand Model with Tax Increase Scenario Government increases person... View full answer

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