For each of the following situations graph the supply and demand curves for the loan market, for the bond market and show the primary movement in the curves as a result of the given action. Show the effect this would have on interest rates, bond prices, quantity of loans and quantity of bonds?

a) The government increases the corporate tax rate, which decreases the return on new business investments.

b) The new US Congress and the president come to an agreement on a bill to increase the debt ceiling, thus reducing the risk of a government debt default.

c) The recent financial crisis and recession makes Americans more skeptical of debt and increases the national savings rate, and generally more conscious of the need to think about the future.

d) A first time home buyer tax credit make is affordable for more families to purchase a house.

e) Federal spending increases leading to a larger federal deficit.

f) Federal Reserve chairman announces in a press conference that he will implement a new anti-inflation program and the financial markets believe that he will follow through on this promise. Excel Problem: For this problem, you must calculate your answer using excel and upload the spreadsheet.