Question: Please help me with this, Thanks 5. Explain what the Fisher effect is and how it would be reflected in rising interest rates. 6. Explain
Please help me with this, Thanks

5. Explain what the Fisher effect is and how it would be reflected in rising interest rates. 6. Explain the meaning and differences between the loanable funds framework and the liquidity preference framework in estimating the equilibrium interest rate. (Include the effects of changes in income, price levels, and expected inflation.) 7. Predict the supply and demand changes for bonds and money that usually occur with the following events: Bonds: a. business cycle expansion with growing wealth b. expected rise in interest rates c. increase in expected rate of inflation d. increased risk for bonds e. increased liquidity for bonds f. higher government deficits Money: a. increase in level of income b. rise in the price level c. income rising during an expansion d. price level increases 3. What is the liquidity premium theory? How does this theory combine the features of pure expectations theory and market segmentation theory? What are the implications of the same? * * * * * * ** ** * *
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