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Author Question: Suppose there is an increase in the expected future interest rate. This will cause which of the ... (Read 39 times)

Starlight

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  • Posts: 567
on: Jun 30, 2018
Suppose there is an increase in the expected future interest rate. 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

Question 2

Securitization can not help financial intermediaries
 
  A) diversify their portfolios.
  B) avoid bankruptcy.
  C) attract more investors to buy and hold their securities.
  D) decrease the cost of borrowing.


Dnite

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

B


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