7. Suppose the evolution of COVID-19 leads to less virulent variants taking pressure off supply chain...
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7. Suppose the evolution of COVID-19 leads to less virulent variants taking pressure off supply chain constraints, opening them up further. Using theory, explain what the impact might be on long term bond yields. Illustrate the impact of this policy on the 10-year bond market (prices, yield, and quantity). (1-2 paragraphs plus a clearly labelled diagram) 7. Suppose the evolution of COVID-19 leads to less virulent variants taking pressure off supply chain constraints, opening them up further. Using theory, explain what the impact might be on long term bond yields. Illustrate the impact of this policy on the 10-year bond market (prices, yield, and quantity). (1-2 paragraphs plus a clearly labelled diagram)
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