Assignment 5 due Feb. 21

Chapter 6 the market for loanable funds

1. Ch 6 Q5 (&graph it--try to use MSWord and insert a GIF file you draw; attach that to e-mail)

2. Ch 6 Q6 (&graph it)

3. Ch 6 Q7 (& graph)

4. Ch 6 Q10 (& graph)

5. Use the formula for net present value (chapter 4) to explain WHY when bond prices RISE, interest rates FALL.

6. WHO is in the market for "loanable funds"?

a. businesses

b. people (consumers)

c. government

d. foreign borrowers