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Author Question: Suppose individuals now believe that there will be an increase in the future expected interest rate. ... (Read 115 times)

Mimi

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on: Jun 30, 2018
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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Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


Mimi

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

tanna.moeller

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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