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The figure depicts the market for short-term bonds. Suppose uncertainty about the future will lead investors to move to the short end of the market.
The figure depicts the market for short-term bonds. Suppose uncertainty about the future will lead investors to move to the short end of the market. (Assume this shock only affects the demand for short-term bonds) Using the line drawing tool, show the effect of this shock on the short-term bond market. Properly label your line. Carefully follow the instructions above, and only draw the required object
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