Multiple Choice
During the financial crisis of 2008-2009, many financial institutions stopped making loans even to creditworthy customers, which could be represented in the IS-LM model as a(n) :
A) expansionary shift in the IS curve.
B) contractionary shift in the IS curve.
C) expansionary shift in the LM curve.
D) contractionary shift in the LM curve.
Correct Answer:
Verified
Correct Answer:
Verified
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