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Eco/372 Week 2

Satisfactory Essays

Week 2 has been quite overwhelming. I did not have enough time to do my reading assignments over the weekend. I normally utilize Saturday and Sunday to do my research work and reading. Unfortunately, on Saturday morning, I attended a meeting that took half of the day, when I returned home my husband informed that he had invited our friends over for dinner as they will be leaving for Melbourne the following day. My house was a mess as it hadn't been cleaned the previous weekend when we were away. Thus, my whole Saturday was wasted on doing the trivial aspects of life. I missed church on Sunday so that I can catch up on my work and everything went well thereafter. I managed to complete my tasks. I found that a lot of students were divided when it came answering the forum discussion assignment on what would happen to bond prices if terrorism ended and countries adopted free trade. What's you take on this one? Thank you Professor for the feedback. Prepare an (approximately) 200 word summary of the textbook material you have read this week on Chapter 6. This summary should be entered in your learning journal this week. …show more content…

Business conditions determine the demand for bonds, if favourable there is an increase that shift the demand curve to the right), pushing prices higher and yields lower however if business conditions were unfavourable, profit opportunities for businesses dried up, shifting the supply curve of bonds left, further increasing bond prices and depressing yields. During inflationary periods, interest rates rose per the Fisher Equation and Keynes's real nominal balances.The birth of globalization and end of the cold was helped in the reduction of interest rates by rendering the business climate favourable therefore pushing the demand curve for bonds to the right, bond prices upward, and yields

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