Q1. Explain and show graphically the effect on the supply and demand for Bonds in a deflationary period. What is the effect on interest rates and the quantity of bonds?
Q2. A simple linear regression function, Y = 20 - 0.05X, where Y denotes the sales of gas (x 1,000 gallons) and X denotes the gas price ($ per gallon). We can estimate that one-dollar increases in gas price will decrease the sales.
Q3. What are the standard errors of the least squares estimates b2 and b3 in the regression model y=B1+B2x2+B3x3+e where N=202, SSE = 11.12389, r23=-0.114255, sigma = 1(xi2-Xbar2)^2 = 1210.178, and sigma = 1(xi3-Xbar)^2=30307.57?