= . _ . . This quiz: 1O poin "\"' possible QUIZ- Chapter 15 QUIZ This question: 1 p0int(s] possible The bond market is depicted in the graph to the right. a. The bond demand curve is downward sloping because 199\" 0' 900 Sn 0 A. the government sells more bonds at lower interest rates. Q soo O B. as the interest rate decreases people are willing to buy more bonds. E O C. the Fed's decision to buy or sell bonds is independent of the interest rate, 700 O D. lower bond prices translate into higher interest rates and retums. E 600 m . "5 500................................. El] b. Suppose the Fed detrides to sell bonds, 8 -: 400 1.) Using the line drawing toot depict changes in the bond market. Properly label your line. '1 300 2.) Using the point drawing toot, label the new equilibrium point'E1'_ 200 Carefully follow the instructions above, and only draw the required objects. 100 D 0 I I l I I I I I l D 5101520253035404550 Quantrty DI Bonds