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

Question 79

Multiple Choice

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


A) an increase in consumer confidence accompanied by a decrease in the target interest rate.
B) a decrease in consumer confidence accompanied by an increase in the expected rate of inflation.
C) a negative demand shock accompanied by an increase in the term structure effect.
D) a positive demand shock accompanied by a decrease in the default-risk premium.

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