Multiple Choice
The effect of the subprime loan crisis pushed the ________. This pushed the MP curve ________ and the AD ________.
A) financial friction up; up; down
B) inflation rate up; up; down
C) unemployment rate down; down; up
D) risk-free interest rate up; down; up
E) federal funds rate to zero; down; down
Correct Answer:
Verified
Correct Answer:
Verified
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