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Conside the following shocks to the bond market: (A) an increase in perceived risk, (B) an increase in the government deficit. Explain how the above

Conside the following shocks to the bond market: (A) an increase in perceived risk, (B) an increase in the government deficit. Explain how the above shocks to the bond market affect the money market. Show your findings graphically, making sure that all is labelled correctly.

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