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Due to a natural disaster, the government suddenly faces the cost of reconstruction in the damage. To deal with this sudden expenditure, the government needs
Due to a natural disaster, the government suddenly faces the cost of reconstruction in the damage. To deal with this sudden expenditure, the government needs to borrow funds. Using the supply and demand for bonds, show how a sudden increase in the government expenditure affect price of the bond, and the quantity of bonds. Provide labelled graph to support your answers
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