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On December 19, 2018, the Federal Reserve surprised the market with another interest rate hike the fed fund target range was raised by 25 basis

On December 19, 2018, the Federal Reserve surprised the market with another interest rate hike the fed fund target range was raised by 25 basis points, from 2%-2.25% to 2.25%-2.5%. Answer the following two questions:

a) Analyze the impact of this monetary policy shock on bond prices

b) Analyze the impact of this monetary policy shock on stock prices.

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