A temporary adverse supply shock directly causes

A) a shift down and to the left of the IS curve.
B) a shift to the left of the FE line.
C) a shift down and to the right of the LM curve.
D) a shift up and to the right of the IS curve.

B

Economics

You might also like to view...

Suppose at the current price, the demand for copper is estimated at -3.14. What happens to sales revenue if the government imposes a price ceiling below the free market equilibrium price in the copper market?

A) Sales revenue falls. B) Sales revenue remains unchanged because copper is a necessity for most industries. C) Sales revenue rises. D) It cannot be determined without information on prices.

Economics

Briefly explain the process of securitizing mortgages

What will be an ideal response?

Economics