The IS curve ________ when the real interest rate increases
A) shifts to the right
B) shifts to the left
C) shifts up
D) all of the above
E) none of the above
E
Economics
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Which of the following was the main reason for increased counterparty risk in the shadow banking system prior to the financial crisis of 2007-2009?
A) increased leverage B) government insuring money market deposits C) many firms borrowing long term for short-term investments D) trading of derivatives on exchanges
Economics
Suppose the economy is just recovering from a recession and all signs now point to robust growth. How might this transition from recovery to expansion be reflected in the monetary policy curve?
What will be an ideal response?
Economics