Illustrate what happens to interest rates when the, Business Economics

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Illustrate what happens to interest rates when the

Illustrate what happens to interest rates when the riskiness of bonds rises using the supply and demand for bonds framework. On another graph, illustrate what happens to interest rates when the riskiness of bonds rises using the liquidity preference frame-work. Be sure to label all curves, axes, the direction of curve shifts, and initial/final equilibrium. Are the results the same for both frameworks?

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Business Economics: Illustrate what happens to interest rates when the

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