^Refer^to^the^graph.^A^movement^of^the^Security^Market^Line^from^SML2 ^to^SML1 ^and^of^the^highlighted^asset^from^A2 ^to^A1 ^would^be^caused^by A)expansionary monetary policy and arbitrage, respectively. B)arbitrage and expansionary monetary policy, respectively. C)restrictive monetary policy and arbitrage, respectively. D)arbitrage and restrictive monetary policy, respectively.

Question

Quizplus · Accepted Answer

The Answer of ^Refer^to^the^graph.^A^movement^of^the^Security^Market^Line^from^SML2 ^to^SML1 ^and^of^the^highlighted^asset^from^A2 ^to^A1 ^would^be^caused^by A)expansionary monetary policy and arbitrage, respectively. B)arbitrage and expansionary monetary policy, respectively. C)restrictive monetary policy and arbitrage, respectively. D)arbitrage and restrictive monetary policy, respectively.

Refer to the graph

^Refer^to^the^graph