Financial deregulation and innovation since the late 1970s has made spending, especially new housing, ________ sensitive to changes in the market interest rate, leading to a ________ IS curve
A) more, steeper
B) more, flatter
C) less, steeper
D) less, flatter
C
Economics
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The internal rate of return equals the cost of capital when
A) NPV = 0. B) NPV > 0. C) NPV < 0. D) None of the above
Economics
Beginning in the latter part of 1999, the Federal Reserve raised interest rates. What do you predict happened to the prices of bonds already in the market? How can you explain this behavior?
Economics
Suppose the number of buyers in a market decreases. As a result, would the demand curve in this market shift to the right or to the left?
Economics
A subsidy for pollution not produced can induce producers to pollute at the efficient level.
A. True B. False C. Uncertain
Economics