ECON 1P92 Assignment 6 February 28, 2024 Instructions: Please write out your answers clearly, and submit them to your TA, when you meet them during the week of March 4th. You may type your assignment, or write it in hard copy. If you write it out, then please ensure that it is legible. If you are citing sources, then please use an accepted citation style (MLA, Chicago, APA, etc.). Short Response 1. Using a supply and demand diagram, with price and yield on opposite vertical axes, briefly explain how each of the following situations would affect the government bond market. (40%) (a) Increased fears about inflation. (b) The government issues bonds to fund a war. (c) Pension funds increasingly add bonds to their portfolios. (d) An economic recession destroys a lot of wealth