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2023 (221) 3) ( Use demand and supply graphical analysis in the bonds market in the following questions. Make sure to clearly illustrate any shift
2023 (221) 3) ( Use demand and supply graphical analysis in the bonds market in the following questions. Make sure to clearly illustrate any shift in the curves with arrows and to label every curve and axis appropriately. a)' In order to comply with international standards, the government lowers its budget deficit by 1 percentage point of the GDP. In a bonds market graph, illustrate the effect on bond prices and interest rates. b) ( Due to long term government policies (such as Vision 2030), business expect an increase in the profitability of their projects. Analyze the effect on bond prices and interest rates under this scenario using a demand and supply diagram
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