Intermediate Macroeconomics

  Problem Set 4: The money market model and non-traditional monetary policy Question 1: Bond prices and interest rates (10 points) Consider a bond that promises to pay $100 in one year. a. What is the equilibrium interest rate on the bond if its price today is...

Intermediate Macroeconomics

Below, I have written an economic situation. For each, please state how the condition alters theIS, LM, AD, SRAS and LRAS curves discussed in class. Assume you are comparing the conditionsbelow to the standard model described in class and in chapters 10, 11 and 13 of...

Intermediate Macroeconomics

Find the risk premium and explain its significance.For this paper, you need to go to FRED (https://fred.stlouisfed.org/) and download four interestrate series from January 1, 2004 through the end of 2020. I will post a video about how to dothis.These rates are:• The...