Author Question: Suppose there is a simultaneous reduction in the expected future interest rate and increase in ... (Read 26 times)

tfester · **on:** Jun 30, 2018

Suppose there is a simultaneous reduction in the expected future interest rate and increase in future expected output. This will cause which of the following to occur?

A) the IS curve to shift left in the current period
B) the IS curve to shift right in the current period
C) the LM curve to shift up in the current period
D) the LM curve to shift down in the current period
E) an ambiguous effect on the position of the IS curve in the current period

Question 2

Collateralized debt obligations (CDOs) were first issued in

A) 1980s.
B) 1990s.
C) 2000.
D) 2001.