Question
Suppose that interest rates have been increasing.Provide one possible reason for this occurrence from the demand for bonds and one possible reason from the supply
Suppose that interest rates have been increasing.Provide one possible reason for this occurrence from the demand for bonds and one possible reason from the supply of bonds.Be specific in your reasons (including the direction of change) and do not use expected inflation as one of your reasons.In each case, draw the relevant bond market diagram showing the result (please draw one graph illustrating the change in the demand for bonds and another different graph that illustrates the change in the supply of bonds).In the case of supply, name the specific bond with the change
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