This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose individuals now believe that there will be an increase in the future expected interest rate. ... (Read 104 times)

Mimi

  • Hero Member
  • *****
  • Posts: 542
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.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vish98

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

B


Mimi

  • Member
  • Posts: 542
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

peter

  • Member
  • Posts: 330
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The U.S. Pharmacopeia Medication Errors Reporting Program states that approximately 50% of all medication errors involve insulin.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

In 2010, opiate painkllers, such as morphine, OxyContin®, and Vicodin®, were tied to almost 60% of drug overdose deaths.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

Changes in metabolic rate of selected structures in a mammal's body during different activities Changes in metabolic rate of selected structures in a mammal's body during different activities
Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure Risk of Stroke and Heart Disease Increase with Increasing Blood Pressure
How to calculate credit card interest when the interest is compounded How to calculate credit card interest when the interest is compounded
Total Fertility Rate in Japan: Actual versus Forecast Total Fertility Rate in Japan: Actual versus Forecast
Saving Rate by Decile of Income per Capita Saving Rate by Decile of Income per Capita
A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ... A $50 000 bond bearing interest at 6.5% bond payable semi-annually matures in 10 years. If it ...
Video: Major Elements in Biological Molecules: Lipids

For a complete list of videos, visit our video library