Figure 10.7 -Refer to Figure 10.7.A movement from point A to point D could be caused by A) a positive demand shock accompanied by an increase in the default-risk premium. B) a decrease in consumer confidence accompanied by a a decrease in the expected rate of inflation. C) a negative demand shock accompanied by an increase in the target interest rate. D) an increase in consumer confidence accompanied by a decrease in the term premium investors expect in the future.

Question

Quizplus · Accepted Answer

The Answer of Figure 10.7 -Refer to Figure 10.7.A movement from point A to point D could be caused by A) a positive demand shock accompanied by an increase in the default-risk premium. B) a decrease in consumer confidence accompanied by a a decrease in the expected rate of inflation. C) a negative demand shock accompanied by an increase in the target interest rate. D) an increase in consumer confidence accompanied by a decrease in the term premium investors expect in the future.

Figure 10.7 -Refer to Figure 10.7.A Movement from Point a to Point