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Author Question: Suppose individuals now believe that there will be an increase in the future expected interest rate. ... (Read 46 times)

Mimi

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Suppose individuals now believe that there will be an increase in the future expected interest rate. This increase in the expected future interest rate will cause which of the following to occur in the current period?
 
  A) an upward shift of the LM curve
  B) a leftward shift of the IS curve
  C) the IS curve to become flatter
  D) the LM curve to become steeper
  E) none of the above

Question 2

Bonds with relatively high risk of default are called
 
  A) Brady bonds.
  B) junk bonds.
  C) zero coupon bonds.
  D) investment grade bonds.



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vish98

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Answer to Question 1

B

Answer to Question 2

B




Mimi

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Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it


matt95

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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