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    Impact demand for assets by identifying the cause and effect

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    Question 1. What are the four variables that impact demand for assets by identifying the cause and effect for each as it relates to an increase in quantity demanded?
    Question 2. What are the three factors that affect supply in the Bond Market, and how do they correlate to the downward or upward shift of the supply curve?
    Question 3. If Wilma borrows $5,000 from her brother (at 5% interest per year) and the loan matures in 10 years, how much will she have to pay annually to pay the loan off in 10 years? How much will she have to pay annually to pay the loan off in four years? (Show all work/calculations /formulas.)
    Question 4. What is meant by the term "market equilibrium", and why is this important within the study of supply and demand for Bond Market?

    Each question must be at least 200 words with references and the book that I am using is Financial Markets & Institutions by Fredrick S. Mishkin & Stanley G. Eakins

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    Solution Preview

    The response addresses the query posted in 1181 words with APA references

    //In the following paragraphs, there will be a discussion over the variables that impact the demand for assets in the market. There will be a consideration of cause and effect of variables in order to increase or decrease the demand for the assets. There will also be a discussion on factors affecting the supply curve of bonds in the market.//

    Answer 1

    The four variables that impact assets' demand include consumer income, expectations, population changes, tastes, and trends. The cause and effect of consumer income can be seen through the increase in income resulting in an increase in the consumption that means there is an increase in the demand for goods. The decrease in the income can be seen through a decrease in the consumption that means a decrease in the demand for the goods. The cause and effect of expectation can be seen through waiting time of the consumer in case he thinks that price will fall over the period of time. The customer does not buy the goods that mean decrease in the demand for the goods. If the consumer thinks that the price of the goods will increase in future, he will buy goods immediately that mean there is an (will be an) increase in the demand for the goods (McEachern, 2012).

    The cause and effect of the population can be seen through the increase in population, which will need more consumption resulting in an increase in demand for the goods. The decrease in the population will result in the decrease in demand because of a decrease in the need for goods. The cause and effect of tastes ...

    Solution Summary

    The impact demand for assets by identifying the cause and effect is determined. The response addresses the query posted in 1181 words with APA references.

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