For the following questions refer to Figure 14.3 below.
-The effect of the subprime loan crisis pushed the __________.In Figure 14.3,this is shown as a movement from point __________ to __________.
A)inflation rate down;c;d
B)long-run real interest rate down;c;b
C)risk premium up;c;d
D)market real interest rate down;a;b
E)unemployment rate up;c;d

Question

For the following questions refer to Figure 14.3 below. 
-The effect of the subprime loan crisis pushed the __________.In Figure 14.3,this is shown as a movement from point __________ to __________.
A)inflation rate down;c;d 
B)long-run real interest rate down;c;b 
C)risk premium up;c;d 
D)market real interest rate down;a;b 
E)unemployment rate up;c;d

Quizplus · Accepted Answer

The subprime loan crisis increased the risk premium, which is shown as a movement from point c to d in Figure 14.3.

For the Following Questions Refer to Figure 14