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Author Question: As of 2005, some analysts were concerned that there was a bubble in the U.S. housing market. Suppose ... (Read 117 times)

Mimi

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on: Jun 30, 2018
As of 2005, some analysts were concerned that there was a bubble in the U.S. housing market. Suppose there is a reduction in real estate prices. This reduction in real estate prices would have the most direct effect on which of the following types of wealth?
 
  A) financial wealth
  B) housing wealth
  C) human wealth
  D) none of the above

Question 2

A reduction in the reserve deposit ratio, , will most likely have which of the following effects?
 
  A) a rightward shift in the IS curve
  B) a leftward shift in the IS curve
  C) an upward shift in the LM curve
  D) a downward shift in the LM curve


flexer1n1

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

B

Answer to Question 2

D


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