The multiplier for investment represents the ratio of the change in income to the change in investment spending

If interest rates increase from 9 percent to 10 percent, a bank with a duration gap of 2 years would experience a decrease in its net worth of

A) 0.9 percent of its assets. B) 0.9 percent of its liabilities. C) 1.8 percent of its liabilities. D) 1.8 percent of its assets.

An unexpected rise in Housing Starts should send bond prices __________ and stock prices __________

A) up; up B) up; down C) down; up D) down; down