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    Principles of Economics
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    Exam 30: IS-MP Analysis: Interest Rates and Output
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    When the Perceived Financial Risk Rises in an Economy, The
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When the Perceived Financial Risk Rises in an Economy, The

Question 20

Question 20

Multiple Choice

When the perceived financial risk rises in an economy, the:


A) lenders become less risk averse.
B) TED spread rises.
C) TED spread falls.
D) risk premiums fall.

Correct Answer:

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