Answered: Suppose that people in France decide to…

Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the future.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter9: An Introduction To Basic Macroeconomic Markets

Section: Chapter Questions

Problem 12CQ

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Suppose that people in France decide to permanently increase their savings rate. Predict what will happen to the French bond market in the future. Please answer the question by drawing the appropriate supply-and-demand diagram.

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