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When demand increases for Apples, the price of Apples increases. When the price of Apples increases, the demand for Oranges increases. Fed demand for Investmen
by cjensen 12y ago
When demand increases for Apples, the price of Apples increases. When the price of Apples increases, the demand for Oranges increases.
Fed demand for Investment Bonds increases the price of Investment Bonds. When the price of Investment Bonds increases, the demand for other investments increases.
Textbook Econ 101, as the parent comment noted.
- gee_totes 12y agoI would say you're comparing apples to oranges by conflating Investment Bonds (which I'm assuming you mean Treasury Bonds), but you've already set yourself up for the apples and oranges with your example. If you'll check the source article[0] that the Techcrunch graph was pulled from, you'll see that there is a negative correlation between the Treasury bond yield and the amount of money flowing into seed deals. According to your Textbook Econ 101, there should be a positive correlation between these two. But the data shows there is not. [0]https://medium.com/mattermark-daily/why-is-the-number-of-seed-rounds-raised-in-q4-2014-down-30-38627517ca4e https://medium.com/mattermark-daily/why-is-the-number-of-see...