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    Macroeconomics Study Set 26
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    Exam 14: The Great Recession and the Short-Run Model
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    The Effect of the Subprime Loan Crisis Pushed the Risk
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The Effect of the Subprime Loan Crisis Pushed the Risk

Question 26

Question 26

True/False

The effect of the subprime loan crisis pushed the risk premium up.This pushes the MP curve up and the AD down.

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