Question: Q4. Critically analyze the following graphs how changes equilibrium interest effect changes interest rate given in graph below? (5x5=10 Marks) A) Analyze the effect of

 Q4. Critically analyze the following graphs how changes equilibrium interest effect

Q4. Critically analyze the following graphs how changes equilibrium interest effect changes interest rate given in graph below? (5x5=10 Marks) A) Analyze the effect of sudden expectation of higher interest rates in short-term and long term markets? Market for short-term risk-free debt Market for long-term risk-free debt $ $ SS D D D D Q4. Critically analyze the following graphs how changes equilibrium interest effect changes interest rate given in graph below? (5x5=10 Marks) A) Analyze the effect of sudden expectation of higher interest rates in short-term and long term markets? Market for short-term risk-free debt Market for long-term risk-free debt $ $ SS D D D D

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